THE NEXT MARKET RALLY COULD EXPOSE THE BIGGEST WEAKNESS IN TRADITIONAL WEALTH MANAGEMENT.

Why we believe TPP is positioned to outperform when equity markets recover, and why what happens during a downturn matters just as much as the recovery itself.

Markets fall. Investors get nervous. Wealth managers tell their clients to sit tight.

Sound familiar?

Over recent months, European equity markets have experienced a difficult period. Investors with meaningful exposure have felt the pain, including clients of TPP.

We're not going to pretend otherwise.

But here's where things get interesting.

Two investors can experience exactly the same market downturn, and emerge from the recovery with very different returns.

Why?

Because what you do during the downturn can make an enormous difference to what you earn after it.

And that is precisely where we believe TPP has an advantage over traditional wealth management.

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1. BUY, HOLD AND HOPE. OR BUY, MANAGE AND CAPITALISE?

Let's imagine two investment portfolios.

Both have exposure to European equities.

Both experience a market correction.

Portfolio A: The traditional wealth manager.

The market falls 10%.

The portfolio falls broadly in line with its exposure.

The advice? Stay invested. Remain patient. Markets recover over time.

And when markets eventually return to their previous highs, the investor recovers the lost ground.

Portfolio B: The TPP approach.

We don't simply sit and wait.

We monitor markets daily, adjust exposure, take profits when appropriate and look for opportunities to build positions at more attractive prices.

During the recent weakness, we've been progressively scaling into European equities, including opportunities in France and across broader European markets.

Our recent average entry levels have been approximately 5–6% below previous market highs.

That's important.

Because if markets recover to those highs, positions established at lower prices have the potential to generate additional returns that simply holding the original exposure would not capture.

For example, a position entered 6% below a previous high would gain approximately 6.4% if that market returned to its former level.

Of course, that assumes the position remains invested through the recovery, and actual portfolio returns depend on exposure, timing, costs and the performance of individual strategies.

But the principle is straightforward.

We don't just want markets to recover. We want to be better positioned when they do.

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2. LEVERAGE: DANGEROUS IN THE WRONG HANDS. POWERFUL WHEN USED WITH DISCIPLINE.

There's another important difference.

Leverage.

It's a word that understandably makes some investors nervous.

And frankly, it should.

Used irresponsibly, leverage can magnify losses, accelerate drawdowns and destroy capital.

But used selectively, alongside disciplined risk management, it can be a valuable investment tool.

At TPP, we don't believe investors should always have the same exposure to the market.

Sometimes we want considerably less.

Sometimes we want more.

And sometimes the smartest decision is to do very little.

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A real example: The Iran conflict

When tensions escalated, some of our strategies were operating with approximately 40% market exposure.

In simple terms, a 1% market fall would have translated into roughly a 0.4% decline in those strategies, assuming their exposures behaved as expected.

As risks increased, we reduced exposure further, to approximately 10%.

Why?

Because we didn't believe the risk-reward justified being fully invested.

Then markets weakened.

As prices moved lower, we began identifying opportunities to re-enter.

Some positions were established approximately 7% below previous market highs.

And as our assessment of the opportunity improved, we increased exposure.

In certain strategies, that meant moving from a fraction of normal market exposure to approximately 1.7 times exposure.

Consider what that means.

With 10% exposure, a 1% market move would produce approximately a 0.1% move in the strategy.

With 1.7 times exposure, that same 1% market move could produce approximately a 1.7% move.

Same market. Very different positioning.

Naturally, leverage works both ways. A further market decline would also magnify losses at higher exposure levels.

And those figures illustrate the effect of market exposure, not guaranteed or exact strategy returns.

But they demonstrate something fundamental about our approach.

We aim to take less risk when opportunities look unattractive — and selectively increase exposure when we believe the odds have improved.

That is very different from remaining fully invested regardless of market conditions.

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3. WHY WE'RE OPTIMISTIC ABOUT THE NEXT RECOVERY

Nobody knows precisely when the next sustained rally will arrive.

Not us. Not your wealth manager. Not the economists appearing on television.

And markets could fall further before they recover.

But we do know how we're positioning.

Over recent weeks, we've been using market weakness to build exposure at prices we consider increasingly attractive.

Our objective is simple:

When markets recover, we want our clients to benefit not only from the recovery itself, but from the positioning decisions we've made during the downturn.

Could that mean outperforming traditional buy-and-hold portfolios by an additional two or three percentage points?

That's certainly what we're aiming to achieve where the opportunities allow.

Could it be more? Potentially.

Could it be less, or could our approach underperform? Absolutely.

There are no guarantees. Market timing can be wrong, additional positions can lose money, and leverage can amplify those losses.

But we believe an actively managed, risk-conscious approach gives us opportunities that the traditional buy-and-hold model often leaves unexplored.

And that's why we're particularly interested in what the coming months might bring.

We don't want to spend a market correction simply hoping for better days. We want to use it to prepare for them.

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ALREADY A TPP CLIENT? A PERSONAL MESSAGE FROM US.

Firstly, thank you.

The last couple of months haven't been easy for equity investors, and some TPP portfolios have experienced losses alongside the wider markets.

We recognise that.

You've also been with us through some extraordinary periods of uncertainty, from the Trump tariff announcements to the Iran conflict and the latest European market weakness.

Throughout those periods, our approach has remained consistent.

Monitor risk. Adjust exposure. Be patient when opportunities are limited. Act decisively when we believe the risk-reward becomes attractive.

We're currently positioning strategies to participate in a potential recovery, with the ambition of capturing additional returns through our entry levels and selective exposure management.

Our objective isn't simply to recover alongside the market. It's to outperform our benchmarks over time.

We won't get every decision right, and there will be periods when markets move against us.

But our commitment to disciplined, active portfolio management doesn't change.

Thank you for your continued trust.

We believe some of the most interesting opportunities emerge when markets are making investors most uncomfortable.

And we're working to take advantage of them.

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NOT A TPP CLIENT? PERHAPS IT'S TIME TO QUESTION YOUR WEALTH MANAGER.

Are you frustrated with your investment returns?

Tired of watching European equities fall?

Concerned about US technology valuations?

Or simply fed up with paying substantial wealth management fees to be told to remain patient whenever markets decline?

Here's a question worth asking:

What is your wealth manager actually doing to position your portfolio for the next recovery?

Not what they're hoping will happen.

What are they actively doing?

At TPP, we're challenging the traditional wealth management model.

We build and manage investment strategies, adjust market exposure, actively monitor risk and look to exploit opportunities when market conditions change.

And we do it through a transparent subscription-based model, without traditional percentage-based portfolio management fees.

We don't believe investing should be about buying, holding and hoping.

We believe it should be about having a strategy.

YOUR PORTFOLIO DESERVES MORE THAN HOPE.

Book your FREE portfolio consultation.

Discover how TPP approaches market corrections, manages risk and seeks to outperform traditional benchmarks.

No obligation. No hard sell. Just a conversation about whether there's a smarter way to manage your investments.

SCHEDULE YOUR FREE CONSULTATION. Click here.

Important information: Capital at risk. Investments can fall as well as rise. Past performance is not indicative of future results. Active management, market timing and leverage can increase losses as well as gains. Outperformance is an objective, not a guarantee. Examples of market exposure and returns are illustrative and do not represent guaranteed portfolio outcomes. Individual results will vary according to strategy selection, portfolio construction, market conditions, costs and risk profile

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Important information

This article reflects TPP's market outlook as at 26 October 2026 and is provided for general information, not as personal investment advice or a recommendation to buy any particular security or strategy. Views and forecasts may change without notice.

Capital at risk. Investments can fall as well as rise. Past performance is not indicative of future results. Market-timing strategies, diversification and risk management cannot eliminate losses or guarantee investment outcomes. Historical market patterns and analyst earnings forecasts are not reliable predictors of future returns.

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Disclaimer: This document is issued by TPP, being provided for information purposes only. This document does not constitute legal, tax, accounting or investment advice, nor should it be relied upon when making investment decisions. This is not a personal recommendation or an offer or invitation to buy or sell any financial instrument. The market conditions and views expressed are as at the date of publication, which may change without notice. Unless otherwise stated, market data has been obtained from sources believed to be reliable. While believed to be accurate, no representation or warranty is given as to its completeness or accuracy.

TPP strategies invest in leveraged financial instruments, including equity index futures. Leverage can magnify both gains and losses, meaning losses may occur more quickly than in unleveraged investments. Investments involve risk and investors may lose some or all of their invested capital. Your capital is at risk.

Past performance is not necessarily a reliable indicator of future performance. The value of investments, and any income from them, can fall as well as rise, and investors may not recover the amount originally invested. Future returns are not guaranteed. Therefore, you should not assume that the future performance of any specific investment or investment strategy will be profitable or equal to the corresponding past performance.

TPP is a trading name of UCapital Asset Management LLP. UCapital Asset Management LLP is authorised and regulated by the Financial Conduct Authority (FCA No. 477155). 80 Coleman Street, London EC2R 5BJ.

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Capital is at risk. Investments can fall as well as rise and you may get back less than you invest. TPP strategies may use leverage and short selling, which can magnify losses as well as gains. Past performance is not a reliable indicator of future results. Nothing above constitutes a personal recommendation.

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