Investors are increasingly considering the benefits of diversifying their portfolios across global markets to mitigate risks associated with domestic events.
The broader economic conditions in the U.S. remain an important factor to consider for Swiss investors. The stock market has shown resilience since President Donald Trump's election, with significant gains attributed to expectations of deregulation and tax cuts. However, concerns persist regarding Trump's trade policies and their potential impact on the economic landscape.
U.S. companies are experiencing robust growth, but the risks associated with their stock prices are becoming more apparent. The current valuation of U.S. equities is significantly higher than historical averages, raising questions about the sustainability of current valuations. The evolving landscape of artificial intelligence (AI) is also a significant risk facing the stock market, as any reduction in spending or investment in this area could lead to a reevaluation of tech companies' stock prices.
The actions of central banks, particularly in Japan, could have far-reaching implications for U.S. markets. In this volatile environment, investors are advised to adopt a long-term perspective and diversify their portfolios with a mix of equities and fixed-income investments to manage risk effectively. The interplay between domestic policies and global market conditions will continue to be important for investors, and the ability to adapt and make informed decisions based on comprehensive analysis will be essential.