UBS CEO Predicts Long-Term Impact of Global Political Volatility on Investment Strategies

On February 4, UBS Group CEO Sergio Ermotti highlighted the influence of global political volatility on investment strategies. According to Jin10, Ermotti noted that the ongoing geopolitical and macroeconomic uncertainties are prompting clients to adjust their portfolios, a trend that is expected to benefit UBS and persist for years. He stated, "Geopolitical and macroeconomic uncertainty is creating volatility. I am quite certain that we will have to coexist with this situation for the next decade or so." This environment is driving clients to diversify their geographical asset allocations, with a future decrease in U.S. asset allocations anticipated. Ermotti clarified that this is not a withdrawal or abandonment of assets but rather a strategic diversification using excess liquidity. Addressing the recent global sell-off in software and technology stocks, Ermotti emphasized the need for valuation recalibration. "It is evident that there are some overheated areas in terms of valuations," he remarked. Despite this, he acknowledged the profound societal transformation driven by artificial intelligence, which will inevitably produce both winners and losers in the process.