Equities explained: how to manage risk in your portfolio

Jul 18, 2025

This conversation dives into managing market uncertainties and how political and economic factors affect equities. The hosts discuss the rise of cryptocurrencies and their new potential as an asset class. They unpack the implications of inflation and interest rates, especially during quarterly reporting seasons. The benefits of a diversified portfolio and the risks of holding cash are highlighted, along with insights on stock valuations like NVIDIA versus Tesco. Finally, they explore the importance of management quality and learning from investment mistakes.

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INSIGHT

Earnings Season Moves Markets

Quarterly company reports and management guidance drive short-term equity moves but are often managed to beat expectations.
Investors should focus on underlying trends, not each headline reaction.

INSIGHT

Inflation And Politics Sway Rates

Inflation surprises and central-bank signals push long-term bond yields and can pressure equities.
Political headlines can trigger big short-term market swings even if they later reverse.

ADVICE

Measure Risk Against Liabilities

Assess assets against your future liabilities and goals rather than just loss aversion.
Allocate to financial assets that compound above cash to protect purchasing power.

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In this episode we give you a rundown on the pressing issue of market uncertainty, examining how political risks and economic factors like tariffs shape the financial landscape. Despite global uncertainties, the equity markets continue to show resilience, and cryptocurrencies are growing in significance as a promising asset class, supported by recent legislative developments in the U.S.

Our hot topic for the next few episodes is asset classes, and today we turn our attention to the fundamentals of equities and their varying investment strategies, including the stability of dividend-paying consumer staples with the high-growth potential of tech giants.

What you’ll learn in this episode -

Portfolio Construction and Understanding Risk: Building an investment portfolio requires a clear understanding of risk tolerance and financial goals. Setting benchmarks and diversifying across asset classes - such as equities, bonds, and cash - is essential for managing long-term risks effectively

The Role of Economic and Political Factors in Market Performance: Economic elements like inflation, interest rates, and tariffs, along with political risks, significantly influence financial markets. Investors must stay informed about these factors to better navigate volatile market conditions.

Cryptocurrencies as a Potential Asset Class: Cryptocurrencies are gaining traction as a promising investment, partly due to recent legislative support in the U.S. Investors should evaluate their potential while staying cautious about volatility and regulatory changes.

Exploring Different Investment Strategies: Investing involves balancing stability and growth. Dividend-paying companies in consumer staples, like Tesco, offer steady returns, while high-growth tech innovators such as NVIDIA present opportunities with higher risks and potential rewards.

The Psychological Aspects of Recovery After Financial Losses: Recovering from financial setbacks requires understanding the psychology of loss aversion and maintaining a long-term perspective. Learning to manage wealth responsibly and maintaining a disciplined approach can support recovery and growth.

Community and Knowledge Sharing for Growth: Engaging with fellow investors to share strategies, insights, and experiences fosters a sense of community. Collaboration and learning from others can provide valuable perspectives and tips for navigating the complex world of...