UBS CEO Warns: Risks Are Accumulating, Yet Investors Are Growing Increasingly Complacent

BlockBeats news, September 10: UBS CEO Sergio Ermotti said today that despite accumulating geopolitical and economic risks, investors have instead become more complacent over the past few years, and the current market should have seen larger fluctuations.

Ermotti pointed out that energy and shipping risks from the Iran and Ukraine conflicts, global supply chain pressures, high inflation, and high borrowing costs are still ongoing, while large-scale investment in areas such as artificial intelligence and data centers, although supporting economic growth, is not enough to eliminate potential risks.

On investment strategy, he said UBS clients have recently adopted more cross-industry and cross-region diversified allocation rather than betting on a single market direction, while still continuing to allocate to AI and technology assets. He stressed that this does not mean funds are fully withdrawing from the United States or the dollar, and the dollar remains the world's main "reference currency."

On interest rates, Ermotti expects the European Central Bank, the Federal Reserve, and the Bank of Japan may all raise rates in the coming months, and the market should not expect borrowing costs to quickly fall back to low levels. He believes inflationary pressures have not yet clearly weakened, and it remains a reasonable expectation for rates to stay at relatively high levels for some time to come.