3 Tricks Billionaires Use to Help Protect Wealth Through Shaky Markets
“If I hear bad news about the stock market one more time, I’m gonna be sick.”
We get it. Investors are rattled, costs keep rising, and the world keeps getting weirder.
So, who’s better at handling their money than the uber-rich?
Have 3 long-term investing tips UBS (Swiss bank) shared for shaky times:
Hold extra cash for expenses and buying cheap if markets fall.
Diversify outside stocks (Gold, real estate, etc.).
Hold a slice of wealth in alternatives that tend not to move with equities.
The catch? Most alternatives aren’t open to everyday investors
That’s why Masterworks exists: 70,000+ members invest in shares of something that’s appreciated more overall than the S&P 500 over 30 years without moving in lockstep with it.*
Contemporary and post war art by legends like Banksy, Basquiat, and more.
Sounds crazy, but it’s real. One way to help reclaim control this week:
*Past performance is not indicative of future returns. Investing involves risk. Reg A disclosures: masterworks.com/cd
What’s in this issue;
Welcome to Issue #43! This week we break down a blockbuster start to 2026:
Market Moves: U.S. and European stocks hit fresh records, tech rallies post-CES, small caps surge, and oil & gold are climbing amid geopolitical tension.
Investor Insights: Risk appetite remains strong, leadership is broadening beyond mega-cap tech, and commodities are back in focus as hedges.
Emerging Markets: EMs are no longer just growth plays—they’re stabilising portfolios, powering AI infrastructure, and benefiting from domestic debt buffers.
Earnings & Data Calendar: Key bank and tech earnings kick off Q1; watch US inflation, China trade, and UK/Germany GDP updates.
Global Developments: Energy transitions, geopolitical shifts, and market-moving events in Venezuela, Iran, and Greenland.
Plus, actionable takeaways for portfolio positioning, selective EM opportunities, and commodities as diversification tools.
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What Moved Markets This Week
Global markets kicked off the year on a strong footing, with U.S. and European equities pushing to fresh record highs.
A renewed rally in technology stocks, robust gains in cyclical sectors, and optimism around global growth outweighed geopolitical tensions and tempered expectations for near-term U.S. rate cuts.
Commodities were also in focus, with oil and gold posting notable weekly gains amid geopolitical developments and falling bond yields.
Key market drivers this week:
U.S. equities hit record levels: The S&P 500 and Dow Jones closed at new highs, supported by strong gains in consumer discretionary, materials, and industrials, while small caps (Russell 2000 +4.6%) significantly outperformed.
Tech sentiment revived: CES announcements from Nvidia, AMD, and CoreWeave reignited enthusiasm around AI and semiconductor demand, helping lift the Nasdaq despite mixed economic data.
Mixed U.S. labour data reshaped Fed expectations: Softer-than-expected jobs data and falling job openings reduced confidence in an imminent Federal Reserve rate cut, but did little to derail equity momentum.
Geopolitics lifted energy prices: Oil rose over 3% for the week amid developments in Venezuela and renewed focus on global energy supply, boosting energy stocks.
Europe rallies on M&A and cyclicals: European indices, including the FTSE 100, DAX, and Stoxx 600, hit record highs as mining sector M&A speculation (Rio Tinto–Glencore) improved risk appetite.
Commodities outperform: Gold surged 4% to fresh highs as bond yields edged lower, reinforcing demand for real assets.
Asia mostly higher, but uneven: Japan and China posted strong gains, while India underperformed and Hong Kong edged lower.
Volatility remains subdued: The VIX stayed near 14, signalling continued investor confidence despite geopolitical risks.
What This Means for Investors
Risk appetite remains firmly in place: Record highs across U.S. and European equities, coupled with low volatility, suggest investors are still willing to add risk despite mixed economic data and geopolitical headlines.
Leadership is broadening: Strong performance in small caps, cyclicals, and consumer discretionary signals a rotation beyond mega-cap tech, potentially creating opportunities outside the most crowded trades.
Tech and AI remain structural themes: Renewed enthusiasm following CES reinforces the view that AI-related investment is a multi-year trend, even as near-term rate cut expectations fluctuate.
Rates may stay higher for longer: Mixed labour market data has pushed back expectations for imminent Fed easing, favouring quality balance sheets and pricing power over highly leveraged growth.
Commodities offer diversification: Rising oil and gold prices highlight the role of real assets as both geopolitical hedges and portfolio diversifiers.
Actionable Takeaways
Look beyond mega-cap tech: With small caps and cyclical sectors outperforming, consider gradually increasing exposure to industrials, materials, and consumer discretionary names that benefit from improving growth sentiment.
Stay selective in AI and semiconductors: The AI theme remains intact, but volatility around rates means favouring profitable leaders with strong balance sheets rather than speculative growth.
Use commodities as a hedge: Gold and energy strength underscore their role as portfolio diversifiers, particularly amid geopolitical risk and uncertainty around the path of interest rates.
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Emerging Markets: From Growth Trade to Portfolio Anchor
As we move into 2026, Emerging Markets are no longer just a high-beta growth story. They are quietly becoming the stabilising force in global portfolios.
While the U.S. and Europe wrestle with elevated debt levels and maturing tech cycles, many EM economies are combining fiscal discipline, domestic demand, and high-tech industrialisation.
The result: resilience where investors least expected it.
Here’s what’s changing—and what matters for investors.
1. AI Enters “Phase Two” — and EM Is the Backbone
The first wave of AI was dominated by U.S. software and hyperscalers. The next phase is about physical infrastructure, and Emerging Markets sit at the centre of it.
Beyond the Chips: Taiwan and South Korea remain critical foundries, but investor attention is shifting downstream—into power management, cooling systems, and specialised PCB manufacturing in Vietnam and India.
China’s AI Monetisation: Chinese tech firms are now successfully embedding AI into logistics, e-commerce, and payments—turning efficiency gains into real revenues, not just pilot projects.
Bottom line: EM isn’t just “using” AI—it’s building and monetising it.
2. De-Dollarisation Changes the EM Risk Profile
One of the most underappreciated shifts heading into 2026 is happening in EM debt markets.
Stronger Domestic Buffers: A record share of EM sovereign debt is now held locally rather than by foreign capital. This dramatically reduces vulnerability to sudden USD strength.
The Carry Trade Returns: With the Fed expected to ease gradually in 2026, high-yield EM local-currency bonds are back on investors’ radar.
This isn’t the EM of the 1990s. Currency shocks no longer automatically mean crisis.
3. Where Investors Are Getting Selective in 2026
Capital is moving away from broad EM exposure and toward country-level conviction:
Vietnam: The biggest beneficiary of “China + 1” manufacturing. Growth expectations continue to move higher.
India: A domestic-demand story driven by a growing middle class, with less reliance on global trade cycles.
South Korea: Corporate governance reforms under the “Value-Up” programme are finally unlocking shareholder value.
Brazil & Mexico: Fiscal discipline has left both with lower debt-to-GDP ratios than many developed markets—including the US and UK.
4. Risks Worth Watching
Emerging Markets are stronger—but not immune.
AI Valuation Risk: AI-linked assets in parts of Asia are looking stretched. Any slowdown in global tech spending would hit Taiwan and Korea first.
Trade Fragmentation: New U.S. tariffs on non-AI goods could create a two-speed EM world—high-tech winners and low-margin exporters.
Commodity Wildcards: Venezuela and Nigeria remain key swing factors. Recent geopolitical developments have reintroduced volatility into the oil outlook for 2026.
The Investor Takeaway
2026 is about selectivity, not scarcity.
This is not the year to “buy the index and hope.” The opportunity lies in:
Markets with high domestic ownership of debt
Countries supplying the picks and shovels for the next phase of the AI build-out
Economies where growth is driven internally, not by foreign capital flows
Emerging Markets are no longer the fragile part of the portfolio—they’re increasingly the disciplined one.
🔮 Looking Forward: The Week Ahead
Markets kick off a busy week with the start of earnings season, key economic data, and updates from the Federal Reserve.
💰 Earnings Spotlight
Tuesday, Jan 13
JPMorgan (JPM)
Delta Air Lines (DAL)
Wednesday, Jan 14
Bank of America (BAC)
Wells Fargo (WFC)
Citigroup (C)
Thursday, Jan 15
Taiwan Semiconductor (TSM)
Morgan Stanley (MS)
Goldman Sachs (GS)
BlackRock (BLK)
Friday, Jan 16
PNC Financial (PNC)
Top companies kicking off Q1 earnings:
JPM, BAC, WFC, Morgan Stanley, Citigroup, Goldman Sachs, BlackRock, Delta Air Lines
📊 Economic Calendar
Tuesday, Jan 13
🇺🇸 US CPI YoY (Dec) — Previous: 2.7%
➡️ Confirms whether the recent slowdown in inflation is persistent.
Wednesday, Jan 14
🇨🇳 China Balance of Trade (Dec) — Forecast: $105B vs $111.68B prev
➡️ Slightly narrowing surplus hints at modest export slowdown.
🇺🇸 US PPI MoM (Oct) — Forecast: 0.4%
➡️ Small rise unlikely to change Fed policy.
🇺🇸 US Retail Sales MoM (Nov) — Forecast: 0.3%
➡️ Rebound signals consumer spending resilience.
Thursday, Jan 15
🇬🇧 UK GDP 3-Month Avg (Nov) — Forecast: -0.1%
➡️ Growth flat; stable but sluggish.
🇬🇧 UK Industrial Production MoM (Nov) — Forecast: 1.0%
➡️ Slight slowdown aligns with GDP data.
🇩🇪 Germany Full-Year GDP 2026 — Forecast: 0.2%
➡️ Positive print suggests recovery in Europe’s largest economy.
🏦 Fed Watch & Policy Signals
Expect commentary from:
Governor Stephen Miran
Vice Chair for Supervision Michelle Bowman
Vice Chair Philip Jefferson
Fed Beige Book publication also scheduled, giving insight into regional economic conditions.
📌 Quick Take
Banks in focus: JPMorgan, Bank of America, Wells Fargo, Morgan Stanley, Citigroup, Goldman Sachs, BlackRock
Data to watch: US inflation, PPI, retail sales; China trade balance; UK & Germany GDP
Market themes: Earnings season kickoff, Fed commentary, global growth signals
ICYMI
It’s been a high-stakes start to 2026. While major indices in the UK and US have recently brushed against record highs, the geopolitical landscape is shifting rapidly, and a "mega-merger" in the mining sector is stealing the spotlight.
Here is the breakdown of what else is happening and what it means for your portfolio.
🌍 Global Developments: Geopolitics & Energy
IRENA Assembly (Abu Dhabi): The International Renewable Energy Agency is meeting this week. Despite record solar/wind installations, the sector is reporting its first slowdown in job growth (only 2.3%), signaling that the "easy" phase of the energy transition may be shifting toward a more complex infrastructure phase. Link
The "Greenland" Bid & Venezuela Tensions: President Trump has reiterated a controversial desire for the U.S. to acquire Greenland, sparking diplomatic friction. More pressingly, U.S. strikes in Venezuela on January 3rd have kept oil markets on edge. While the broader markets have remained resilient, energy and defense sectors are seeing heightened volatility. Link
Iran Unrest: Widespread protests in Iran have led to a near-total internet blackout. For investors, this adds a layer of risk to regional stability and potential oil supply disruptions, though the immediate market impact has been localised. Link
Useful Links & Insights
AJ Bell Market Commentary: A deep dive into why the UK market is suddenly a "haven" for global investors fleeing US tech volatility.
IRENA Renewable Energy Report: Vital for those in ESG; it highlights Malaysia as a new emerging hub for the "just energy transition."
J.P. Morgan 2026 Outlook: They are forecasting a 35% probability of a U.S. recession this year but remain bullish on AI-driven earnings growth.
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