How to invest in volatile times amid AI bubble fears, geopolitical risks and trade turmoil

High‑net‑worth investors were expecting geopolitical risks and AI bubble worries to be the biggest threat to portfolios this year.
Already this year AI advances have caused big sell offs in software companies, wealth management firms and cyber security companies.
70% of investors surveyed by Wealth Club saw global tensions as the biggest threat to portfolios. While two thirds were concerned about the risks of an AI bubble.
As the tax year‑end approaches, investors will be seeking defensive strategies to protect their money.
Growth opportunities look more likely in technology hardware rather than software given AI disruption.
Investments offering opportunity 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

“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.”

Three investments to watch amid volatile times

Brookfield Infrastructure Corporation

US listed company Brookfield Infrastructure owns and operates high‑quality, long‑term critical infrastructure assets across multiple sectors and geographies. While software companies look set to stay volatile, those focused on providing hardware look set to be hardier. Brookfield focuses on companies with stable cash flows and strong growth prospects and has significant stakes in the growing data‑centre sector. It also holds assets across the energy, water and freight sectors, ensuring diversification within one investment.

Investor AB

Swedish listed investment and holding company Investor AB focuses on European listed companies, subsidiaries and private equity. It takes significant minority stakes in what it considers strong and sustainable companies across the healthcare, industrial and technology sectors. Its investments via the EQT group offer further diversification into private equity.

Troy Trojan

Troy Trojan is a multi-asset fund which aims to protect investors’ capital and grow its value in real terms over the long term. The multi‑asset fund delivers a cautious strategy, selecting high‑quality companies purchased at what managers believe to be fair valuations. It includes a mix of bonds, exposure to gold, as well as cash and short‑dated Treasury bills. This helps build resilience at the centre of a portfolio in more unsettled times, such as fresh geopolitical tensions, but managers can also adjust and increase risk if conditions improve.”