Investor update

SBS Wealth Market Update - August 2026

Plenty of movement beneath the surface

July was a busier month for investment markets than the overall results might suggest.

Investors navigated shifting expectations around interest rates, a pullback in some AI-related stocks, and ongoing uncertainty in the Middle East. While markets experienced plenty of ups and downs throughout the month, most Wealth and Synergy portfolios finished relatively unchanged overall.

What happened in the markets?

July was a reminder that markets rarely move in a straight line.

US markets experienced periods of volatility as investors digested mixed signals around inflation, interest rates and the outlook for AI-driven growth. Fluctuating oil prices and ongoing geopolitical tensions also added to market uncertainty.

Sentiment improved later in the month, supported by stronger earnings from several large technology companies and signs that inflation pressures may be easing.

Europe was one of the stronger-performing regions, with gains led by Energy, Financials and Communication Services. In contrast, some of the technology stocks that had driven strong market performance earlier in the year gave back part of those gains.

Bond markets also faced challenges. Long-term bond yields continued to rise as investors reassessed how long interest rates may need to remain elevated. While major central banks left rates unchanged, markets increasingly reflected expectations that rates could stay higher for longer.

What happened with our portfolios?

Wealth and Synergy portfolios were negative throughout July.

Developed market investments held up slightly stronger than emerging markets, while bond funds came under pressure as rising long-term interest rates affected returns.

We also saw a shift in market leadership, with value-oriented investments outperforming many growth-focused investments. This reflected investors broadening their focus beyond some of the technology and AI-related companies that have driven returns in recent years.

What this means for you

Months like July are a good reminder that short-term market movements often tell only part of the story.

While headlines can make markets feel unpredictable, investment returns are rarely driven by a single event or theme. Different sectors, regions and asset classes will perform well at different times, which is why diversification remains such an important part of building long-term wealth.

For investors, the focus should remain on the things you can control: staying invested, maintaining a diversified portfolio, and keeping your investment strategy aligned to your goals.

Three simple ways to stay on track

Keep market movements in perspective

Short-term ups and downs are a normal part of investing. Your investment strategy is designed to help you achieve your goals over years, not months.

Trust the value of diversification

Different investments perform differently at different times. A diversified portfolio helps reduce the impact of any one market or sector falling out of favour.

Stay focused on your goals

Your investment plan should reflect your goals, timeframe and circumstances. Periodically reviewing your settings can help ensure you're still on the right path.