Moisturiser, space and silver

Last week’s predictions played out this week as both the FTSE 100 and gold hit new fresh highs. I also had a very unusual and naughty quick play on some trading of Brent crude oil. I don’t often day trade and don’t recommend it because it’s like gambling, but I was in on Monday morning and out by Tuesday lunchtime, and it was a lot of fun. But that’s my itch scratched for 2026.

Back to more sensible, longer-term behaviours and the rise of the FTSE 100. Fresh highs were largely led by three key themes. First, defence, as global conflict boosts expected spend. Rolls-Royce, BAE Systems, and Babcock International were key contributors. Second, financials are also strong with UK high street banks having a good run. Third, mining stocks are firmly back in favour, buoyed as gold, silver, and copper continue to shine.

What’s notable is that a large chunk of 2026 gains so far are ‘old economy’ stories, with the more fashionable tech names having some unusual time out on the gains bench. Investors are seeing value back down on Planet Earth rather than in the very expensive Cloud. Apple is down about 6% this year, Microsoft has fallen by 3%, and Nvidia by 2%. Conversely, the spotty FTSE 100 with its Woolworths trainers and NHS specs is up about 3%.

What is GARP investing, and why does it matter now?

We released December’s best-selling funds and Trusts across key retail platforms this week. The Artemis SmartGARP European Fund is a new name on the lists, as Europe gets a look in. GARP stands for ‘Growth at a Reasonable Price’, which we might think sounds like a bleeding obvious desirable outcome for our investments, BUT this is different to some sexy tech stocks, for example, which offer us the potential for more growth at an extremely unreasonable price!

This value theme – or reasonable price theme – is going to play out this year. Think of it like the equivalent of the John Lewis “Never Knowingly Undersold” promise for a mid-range moisturiser, compared to something like a Crème de La Mer, which is saying that you are being absolutely rinsed, but you stand a slightly better chance of getting a younger boyfriend than you do without it. GARP here is the John Lewis mid-range version. A growth fund would be the Crème de la Mer – expensive but with high promise. A value fund would be Nivea – cheap, solid, and unspectacular, but does what it says on the tin.

Why has Seraphim Space Investment Trust doubled since November?

Seraphim Space is a new name on Investment Trust best-seller lists – this Trust holds a concentrated number of young ‘SpaceTech’ firms. It’s pretty much doubled since November, so buyer, beware! It also costs 1.77% a year in ongoing costs, so it’s expensive.

Why has it captured attention? This is not just about the dream of Tui offering package holidays to go and see the little green aliens. Over 70% of the investments in this Trust have dual-use applications connected to defence, security, and snooping. Satellites used by Finnish Defence Forces, geospatial intelligence, and satellite terminals for US Army use. One key holding – LeoLabs – even offers space traffic management as Lovely Rita (Meter Maid) heads to the Moon.

And as for low-cost Exchange Traded Funds, the iShares Physical Silver ETC took top spot.

What's the difference between silver and gold as investments?

Why silver? Well, gold relies heavily on central banks buying it and also being a traditional safe haven for money looking for (quite literally) a solid home when people get nervous about stock markets and geopolitics. Conversely, silver typically benefits from industrial use in things like EV batteries, AI data centres, and solar panels. Apparently, silver is a very good electrical conductor, as well as enabling pretty necklaces. #devastatingscientificbrainatplay. I’m told that no other affordable metal matches silver's ability to handle high currents efficiently in thin layers while resisting corrosion. Obvs!

So, there you have it. If I sum up the theme playing out in 2026 so far, it’s that the geeks shall inherit the earth as old-fashioned value stocks find favour and the shinier expensive growth stocks have a breather.

On a final, thrilling note. Just when you thought January could not get any more grey, tax return time is here, and the deadline for self-assessment is looming. I recorded a How To guide to self-assessment for Pension Bee. It’s not up for as many Golden Globes as Adolescence but, if you need some help to complete your forms (self-employed people take note in particular), it should hopefully help.

Have a wonderful weekend, everyone. I’m buzzing after an early dip in the sea this morning as the sun came up. I know many of you think I’d be better off in a pool, and thank you all for your many expressions of concern, but (to one particular reader) – no-one in Altrincham Leisure Centre would want to see me in my neoprene socks. Anyway, it was 7.5 degrees in the sea this morning – balmy!

Holly