Author: David Flynn, Chief Investment Strategist and Director.

In this month’s General Update:

  • Portfolio Performance: Baggot’s products outperformed their benchmarks across the board in Q3 2026, driven largely by high commodity and commodity-centric equity exposure. Baggot remains risk-averse ahead of the U.S. mid-term elections but is positioned to increase risk during the seasonally bullish November–May window.

  • Equities & Market Valuations: U.S. stock valuations are at historic highs, with extreme market concentration in the top 10 AI-related companies mimicking historic market bubbles. Baggot favors cheaper international markets like Europe, China, Japan, and Latin America.

  • Bonds & Inflation: While bonds offer better yields than 5–6 years ago, rising diesel prices point to incoming inflation pressures that could force central banks to raise rates, making long-duration bonds risky. Baggot favors ultra-short duration bonds.

  • Gold & Commodities: Although long-term prospects for gold are strong, rising interest rates and energy costs in emerging markets present near-term headwinds. Meanwhile, energy and uranium fundamentals are exceptionally bullish due to chronic under-investment, low inventories, and massive demand from developing nations like India.

Baggot General Update Oct 2026Download

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Important Information
It is vitally important that before you make any investment decision that you seek advice from Baggot Investment Partners (or an independent financial advisor) who can assess your needs and ensure a personal recommendation is made as to the suitability of this product as a part solution for your investment needs and objectives.

NOTHING CONTAINED ON THIS KEY FEATURES DOCUMENT CONSTITUTES INVESTMENT, LEGAL, TAX, OR OTHER ADVICE, NOR IS TO BE RELIED ON IN MAKING AN INVESTMENT OR OTHER DECISION. YOU SHOULD OBTAIN RELEVANT AND SPECIFIC PERSONAL ADVICE FROM BAGGOT INVESTMENT PARTNERS BEFORE MAKING ANY INVESTMENT DECISION.

 

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