Welcome to the February edition of Wealth DFM. We may only be in late February, but 2026 has certainly had an interesting start. Markets such as the Dow, Nikkei 225 etc. may be hovering at or near record territory, but beneath the surface things are changing. Narratives are being challenged and some of last year’s consensus trades are looking far less comfortable. Even gold and silver have had a bumpy ride of late. In other words, it’s exactly the kind of environment that keeps investors on their toes.
Market leadership is changing in subtle but important ways
That’s why our cover feature this month focuses on what we’ve called The Great Market Rotation. Rather than a simple “risk on” or “risk off” backdrop, we’re seeing capital move differently, across sectors, across regions and across asset classes. AI-linked technology stocks, including the Mag 7, are facing tougher questions around valuations and disruption risk. The focus is shifting from potential AI winners to the consequential risk on other, more established businesses, be that in software or even wealth management! At the same time, areas such as smaller companies, cyclical sectors, parts of Europe and Japan, and alternative assets like gold are attracting attention.
Through the voices of strategists, asset managers and market analysts, our cover story on page 5 explores how this rotation is unfolding and what it means for portfolio construction.
Performance data offers perspective beyond the headlines
Elsewhere, we dig into the data behind performance trends with the help of experts from across the industry. AJ Bell’s Laith Khalaf looks back at 2025 and highlights how bargain hunters came out on top, while also reminding us that, over the longer term, global passive strategies continue to make a compelling case.
US policy and central bank direction are also firmly in the spotlight. Ninety One’s Sahil Mahtani examines why a reset at the Federal Reserve, and Trump’s nomination of Kevin Warsh as Chair, may not alter the bigger picture for US assets as much as some expect. That theme is picked up from a fixed income angle by Schroders’ James Bilson, who considers what bond markets might make of the new Fed leadership.
Political risk is back on the radar for UK investors
Closer to home, politics is once again an unavoidable part of the investment conversation. Charlie Lloyd of Shackleton Advisers outlines why renewed political uncertainty in the UK is putting gilt market nerves back into focus, and why developments in Westminster could prove particularly significant for UK gilts in the months ahead.
Taken together, this edition reflects a market environment that is more complex, but also richer in opportunity than the headline indices alone might suggest. As always, our aim is to bring you perspectives that help inform asset allocation decisions in a world where yesterday’s winners are
not guaranteed to lead tomorrow.
Please do, check out our daily updates on www.WealthDFM.com and our monthly WealthDFM Talk podcast too. In February we had guest Nitesh Shah, Head of Commodities and Macroeconomics research at WisdomTree, talking to us about the fascinating movement in gold and silver prices. Well worth a listen!
Sue Whitbread
Editor | Wealth DFM Magazine
