investor complacency amid piling risks
UBS CEO Sergio Ermotti warns that investors are becoming complacent despite rising geopolitical and economic risks. He suggests that while diversification is increasing, investors are struggling to find strong convictions in a volatile global environment.
Why it matters
This highlights a potential disconnect between market optimism and the reality of global instability, which could lead to sudden market corrections.
UBS CEO Sergio Ermotti on Thursday warned that investors have grown complacent over the past few years, even as geopolitical and economic risks have mounted.
"There has been a level of complacency in financial markets in the last few years," Ermotti told CNBC's Christine Tan , adding that given the environment one would have expected considerably higher volatility.
While markets have experienced occasional bouts of turbulence, strong investment in artificial intelligence, data centers and other new technologies has helped support economic growth and financial markets, he said.
The UBS top boss cautioned that investors face an increasingly complicated environment given multiple headwinds. "New problems or new issues are emerging without any of the old ones being addressed or being closed."
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