Investment Insights – Latest market moves and their potential impacts

During 2025 the global economy showed resilience and as we enter 2026 we see support on a global level both from the fiscal and the monetary policy side. In some regions this is more pronounced than in other regions, based on the ability and need for stimulus. This positive policy momentum can be supportive for growth, as we also expect that AI, for instance via increased capital expenditure, can be a positive growth driver in 2026. Fiscal differences are increasing and debt sustainability can also potentially influence the attractiveness of currencies. Diversification remains a central feature in the approach towards asset allocation in our view. We continue to watch fundamental drivers for assets and to evaluate valuations. Due to the AI boom equity valuation may seem stretched, but in our view this is not currently a bubble. Further, we also still see that investors have relatively high levels of cash. Although there can be important reasons to hold cash balances, to keep excess cash balances on a structural basis can potentially lead to an opportunity loss.

In our "Investment Insights" video series, Dr. Pascal Koeppel – Chief Investment Officer and Head Investment Management Vontobel SFA – Dr. Pieter Jansen – Chief Investment Strategist Vontobel SFA – give an update.