Prudence and defensive investment strategies gain ground; How to reposition capital in an increasingly volatile market

• (Interview with Catalina Norena Valderrama, Popular Investor eToro)

High volatility, geopolitical tensions and macroeconomic uncertainties will define the investment market in 2026, and prudence becomes essential, believes Catalina Norena Valderrama, Popular Investor eToro. In her opinion, investors must remain calm, avoid emotional decisions and rely on defensive strategies, with an emphasis on bonds and a flexible capital allocation. In an environment dominated by rapid fluctuations and high valuations, resilience, fundamental analysis and active portfolio management make the difference between impulsive reactions and sustainable performance, the Colombian also told us in an interview. Known as VIXGold on the eToro platform, Catalina Norena Valderrama grew up learning about finance from a very young age.

Reporter: How do you feel as an investor at the moment? What is the market sentiment now?

Catalina Norena Valderrama: 2026 has started much more volatile than the previous years. We have seen Gold and Silver move around in a very violent way, which we haven't seen in a long time. Also, Bitcoin and AI-related stocks have seen quite a bit of overly negative sentiment to start the year.

It is always important to keep a steady hand and a cool head, and never let your emotions take the upper hand. In general, the outlook for 2026 is not as good as for last year, but panicking or taking irrational decisions is never a good idea. Markets move fast, but we also need to stay rational. All we need to do is zoom out a couple of months on the charts to see that markets in general are still doing fine, and that despite the volatility, we are still firmly in a trending bull market. Valuations are high, but so are company earnings.

Reporter: Were there situations or moments when you withdrew your money from one asset and invested it in another (which assets are losing and which are winning)?

Catalina Norena Valderrama: Most of the time, it's not smart to withdraw money from one asset simply because it's losing and rushing into something else simply because it's winning, if the underlying fundamentals are still sound.

I invest heavily in bonds, and here active management is very important. I like trimming positions that no longer generate attractive returns and choose to redeploy that money to where the projected returns look a bit better or feel more sensible at the moment. But for me, it's rarely a dramatic switch.

Reporter: What was the biggest disappointment, from an investment point of view, in 2025?

Catalina Norena Valderrama: More than an investment per se, it was more tied to my personal life. I thought about buying an apartment, and by the time I made up my mind, the deal was off.

This was an important lesson. Don't overthink things that are clearly good investments. And it can just as easily be applied to trading decisions as well.

Reporter: Which investment areas have caught your attention this year?

Catalina Norena Valderrama: Right now, I am applying a bit of a wait-and-see approach. I personally still have a large part of my money locked in short- and mid-term bonds, which I feel will be safe investments in the current market conditions. I am, of course, always on the lookout for new opportunities, but right now I haven't done any major portfolio switches yet.

Reporter: What products, tools, service on the platform do you use or find very helpful? What are the most important features an online platform can offer?

Catalina Norena Valderrama: For me, the most important features are Products and Information.

As far as the products are concerned, over the years, eToro has added a selection of literally thousands of assets to choose from. I especially like their varied ETF selection.

I also love their knowledge bank. Their online training academy is well-structured and robust. In 2025, they also launched Tori, an AI-assistant that can be very helpful in finding specific investment products, especially when it comes to specialised ETFs. I have used it intensively over the last couple of months.

An online brokerage platform needs to be reliable and easy to manage, and this is where eToro truly shines versus its competition.

Reporter: What is your investment strategy for 2026?

Catalina Norena Valderrama: My investment and trading style has always been defensive and strategic, based on both technical and fundamental indicators, and overall macroeconomic signals. In 2026, this will be no different. I continue to seek the most optimal composition of bonds, funds, indices and ETFs that can withstand the ongoing market volatility. Since I expect 2026 to be more volatile than usual, this will prove to be even more important.

Reporter: Thank You!