A former portfolio manager admits his October exit from equities cost him 2.5%, roughly £15,000, after buying back a month later. The timing felt clever—re‑entering before the late‑March low—but the sell‑price exceeded the repurchase price in most cases. Even UK small‑caps couldn’t offset the loss, leaving the author questioning the decision.

He reshaped the holdings, adding US and Latin American stocks plus selective bonds. LatAm and Asian funds have already jumped 13% and 9%, while a blended US‑Japan‑UK basket returned 7% in pound terms. Cash rose from £643,000 to £685,000, delivering a 7% year‑to‑date gain versus 2% for the S&P 500 in sterling and 3% for a balanced index.

What finally tipped the scale was the surge in AI infrastructure spending. Hyperscalers are slated to invest three‑quarters of a trillion dollars in new data centres, and credit‑default‑swap spreads on exposed firms have narrowed since early April. The Nasdaq has topped fresh all‑time highs, reinforcing the view that only a productivity boost can sustain today’s lofty valuations.

For investors, the piece suggests that equity exposure tied to AI‑driven compute may offer the upside needed to justify current price levels, even amid geopolitical uncertainty.