High-net-worth investors recognise that geopolitical risks and AI bubble concerns are significant threats to portfolios this year, underscoring their importance.
Already this year, AI advances have demonstrated the importance of staying alert, triggering big sell-offs in software, wealth management, and cybersecurity companies.
70% of investors surveyed by Wealth Club saw global tensions as the biggest threat to portfolios. Two-thirds were concerned about the risks of an AI bubble.
As the tax year-end approaches, investors will be seeking defensive strategies-such as [diversification, hedging, or alternative assets]-to protect their money from geopolitical and AI-related risks.
Growth opportunities are more likely in technology hardware than in software, given AI disruption.
Investments offering opportunities in volatile times include Brookfield Infrastructure Corporation, Swedish investment company Investor AB and multi-asset fund Troy Trojan.
Susannah Streeter, Chief Investment Strategist, Wealth Club, said, “We’re on a rollercoaster of AI disruption with geopolitical risks adding to the uneasy ride. Sell-offs have rocked markets as artificial intelligence tools and services threaten to disrupt sectors.
High geopolitical tensions have also been the theme so far this year, with the ongoing US military build‑up in the Middle East, while the assault on Venezuela and January’s stand‑off over Greenland are still front of mind. With negotiations set to resume between the US and Iran, the prospects of further destabilisation in the Middle East is an ongoing concern.
The US economy is now showing signs of weakening amid tariff turmoil with the outlook remaining clouded, while concerns about fresh conflict erupting are not going away. This was the biggest worry for high‑net‑worth investors heading into 2026, with 70% surveyed by Wealth Club seeing global tensions as the biggest threat to portfolios.
Adding to the current uncertainty are jitters about agentic AI services, which have already wreaked havoc on the share prices of wealth managers, powerful software companies and now cyber security firms.
Many investors planning to bolster their portfolios and make use of their allowances before the tax year‑end will be looking for stable growth opportunities and defensive strategies to protect their money. While disruption is still expected to be the name of the game as more companies are caught in the AI web, investments in companies providing the backbone to the technology look more resilient.
During periods of volatility, it’s also important to remember that time in the market and diversification have consistently been the foundations of successful investing. For investors owning quality companies over the long term, big bumps in the road are part of the journey. Assets such as gold and more defensive stocks including utilities, healthcare firms, companies selling consumer staples and those with reliable, high‑yielding dividends, tend to be more resilient amid volatility. But as the AI revolution gathers pace, second‑level opportunities across infrastructure and industrial sectors look set to come into their own.”
Leave a Comment