CIO Gary Reynolds explains why value investing and smart diversification helps protect wealth for long‑term investors.

Chief Investment Officer Gary Reynolds tackles one of the big client questions at the moment: What happens if the tech bubble bursts?

Gary reckons the dominance and extreme pricing of the Magnificent 7 (Mag 7) means the question isn’t if the bubble bursts, but when.

For Courtiers investors, the outlook is bright. With the Mag 7 representing over 30% of the S&P 500 and 25% of the MSCI World Index, their influence is immense. Yet Courtiers’ own exposure sits at just under 4%, a deliberate move grounded by value-driven investment and broad global diversification – in other words: protecting clients’ wealth.

Today’s tech giants are high‑quality businesses, but they’re priced at huge multiples. When they wobble – as we’ve seen recently – value investing tends to hold steady. The Courtiers Total Return Growth Fund outperformed the Mag 7 and the S&P 500 in 2025 with substantially lower volatility, demonstrating the benefit of focusing on real assets and sensible valuations rather than speculation and fear of missing out (“FOMO”).

If a tech correction hits, the Courtiers Investment Team is as prepared as ever because they position portfolios before crises occur. Avoiding overcrowded trades and reducing exposure to overvalued sectors needs be done before shake becomes break, and this involves hunting down, identifying and backing strong opportunities available around the world. This is what the Investment Team does day in, day out.

“Value + diversification = shock absorption”

Presenting this basic calculation to Gary he describes it as perfect. By staying disciplined, resisting FOMO-driven markets and looking for value where others aren’t, Courtiers aims to give clients what they trust Courtiers to deliver: portfolios that can weather uncertainty, maximise opportunity and remain aligned with their long term goals.