Investors entered 2026 hoping for greater stability, but volatility has remained a defining feature of markets. Investors have had to contend with sharp swings in sentiment driven by geopolitics, inflation concerns and shifting growth expectations. However – zooming out from daily shifts – the trendlines have been extraordinarily resilient.
By late August, finance-specialist publication The Motley Fool wrote: “It's been another record-breaking year for the stock market, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each soaring by more than 20% over the past 12 months.”
It hasn’t been a smooth upward journey all year, though. The same index slipped into almost correction territory in Q1, and by late Q2, Reuters reported: “Concerns around debt-backed spending by [AI] hyperscalers and mounting fears of a more hawkish Federal Reserve have fuelled the market downturn [in the week of 24 June] that has erased more than $1 trillion in market value from the Nasdaq 100.”
AI ‘bubble’ and tech concentration fears loom large, despite bullish fund manager expectations. As Morningstar reports, the latest Bank of America Global Fund Manager Survey (published Aug 2026) cites “the massive growth in hyperscaler capex […] as the most likely source of disruption” while still telegraphing investor confidence.
Taking money off the table? A more measured perspective
CNN’s Fear-Greed index – used to gauge the mood of the market stock, what’s driving market movements and whether stocks are fairly priced – has shown fear firmly in the driver’s seat for the majority of the preceding 12 months. We see the same nerves in retail investors. According to the Q2 2026 Quarterly Market Perceptions Study from Allianz, “just one in four (25%) Americans think it is a good time to invest in the market right now, down from 34% last quarter”. Some 62% report worrying that “a major recession is right around the corner”.
As the adage goes, ‘it's not about timing the market, but about time in the market’. Periods of market volatility can tempt investors to reduce their exposure. However, reacting to panic can come at the expense of long-term investment outcomes. Hartford Funds produces annual research on the impact of mistiming and market exits. Their 2026 report – using Morningstar data of the S&P 500 Index 1996-2025 – finds that “76% of the stock market’s best days have occurred during a bear market or during the first two months of a bull market”.
Bloomberg data provides a similar insight into the effect of time invested, comparing cash (via money market account) to equity exposure (with the MSCI All Country World Index Net Total Return as proxy for equities). The graph below shows the value of $100 invested each year in global equities (total of $2,100 invested since April 2006). Even with the worst timing – buying at the highest point each year – the cumulative investment value of equities is higher than the return one would see having put $100 into a money market fund at the start of each year.
Building in resilience
A global investor insights survey from Schroders – conducted in Q2 – found 85% of respondents (wealth managers, intermediaries, and institutional investors) were expecting “greater market volatility in the next year”. These professionals were “building more resilience into their portfolios with a greater emphasis on diversification (84%) and downside protection (83%)”.
“Traditionally a 60/40 mix of equities and bonds was seen as an ‘all weather’ approach to building a balanced portfolio. Bonds have tended to perform in opposition to equities,” says James Cook, Investec Structured Product Specialist. “But that’s less clear cut today. If we look at the data from 2022 onwards, global equities and global bonds seem to move in the same general direction. This begs the question whether a ‘traditional balanced portfolio’ provides sufficient diversification.”
Balancing exposure and safety nets
Structured products with capital protection and defined risk-return profiles can provide an additional source of diversification, combining exposure to potential market growth with a measure of downside protection.
“Volatility can make investors feel they have to choose between remaining invested and protecting their capital,” says James Cook, Investec Structured Product Specialist. “Certain structured products offer a middle ground, allowing investors to retain market exposure while introducing a degree of protection against significant declines.”
International Titans Basket Ltd (ITBL), a listed, US dollar-denominated share promoted by Investec, is one example. It provides diversified international equity exposure with capital protection at maturity, helping investors remain invested through periods of heightened volatility.
“Higher interest rates can improve the economics of capital-protected structured products,” says Cook. “Because less of the initial investment may be needed to secure the repayment of capital at maturity, more can be used to generate market-linked returns. That can support more attractive participation rates or stronger protection, which helps explain the growing investor interest.”
Structured products are increasingly being used as portfolio construction tools by investors seeking clearly defined outcomes, closer alignment between risk and investment objectives and greater flexibility in changing markets. In times of uncertainty, understanding the potential risks and returns from the outset can be a valuable part of building a more resilient portfolio.
For more information On the International Titans Basket, visit our website. Applications close on 16 October 2026 with a minimum investment amount of USD 14,000.
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