Looking at both the UK and US stock markets right now, it seems a lot of investors are growing nervous of a potential correction or even a full-blown crash in 2026. And it’s easy to understand why.
-
Enormous capital is currently concentrated in AI and ‘Magnificent Seven’ stocks.
-
The S&P 500 is trading significantly ahead of its historical price-to-earnings ratio average, while the FTSE 100 sits at record highs.
-
Sticky inflation is driving up recession risk.
-
Geopolitical conflicts are on the rise.
-
The private credit markets are experiencing a steady upward trend in late payments and defaul.
That’s obviously pretty scary. Yet despite these doomsday signals, I’m still drip feeding money into both UK and US stocks. Here’s what I’ve been buying and why.
Hindsight is 20/20, and it’s easy to look back at previous market downturns and say: “If only I had sold/bought when prices reached the top/bottom”.
However, this often leads novice and even expert investors into the trap of thinking they can successfully time the market the next time.
The reality is, in the short term, the stock market’s near-impossible to predict. And there are countless examples of investing legends like Michael Burry or Jeremy Grantham calling for catastrophes that never materialise, resulting in massive opportunity costs.
Instead, history’s shown that the best performers are those who remain invested and continue to top up their positions if volatility does indeed rear its ugly head. With that in mind, here’s what I’m doing now.
I would be lying if I said the current investing environment doesn’t make me a little nervous. And I’ve subsequently increased my portfolio’s cash position as a hedge against potential volatility. But I’m also still deploying capital where opportunities emerge.
Even with stock markets near record highs, there are still plenty of under-the-radar bargains to explore. And one that I’ve recently taken advantage of is Ecora Resources (LSE:ECOR).
The business specialises in providing alternative financing solutions for mining enterprises, to help get shovels in the ground in exchange for a small lifetime royalty. It’s certainly a niche business. But it’s one that some of the largest mining companies rely upon, including Rio Tinto, BNP, and Vale, among others.
What makes Ecora interesting right now is the firm’s strategic pivot away from coal towards critical metals such as copper, cobalt, and nickel. 2025 marks the first year in the company’s history where these metals contributed more than 50% of revenue, on track to reach 85% by 2030.