This year, global markets have been volatile, and investors see different risks, but broadly agree that diversification is essential.
Investors emphasize the importance of not concentrating solely on last year's winners and exploring other opportunities.
Fading U.S. Exceptionalism
Chris Rush, investment manager at IBOSS, told CNBC that the biggest risk for investors is being too concentrated in last year's winners, which may lead to missed opportunities.
He also noted that U.S. equities make up a significant portion of global portfolios, and concentration could pose a greater risk.
“Don’t die trying to be a hero”
Ben Kumar, head of strategy at 7IM, noted that the big challenge for investors this year has been managing specific volatility.
He pointed out that diversification has helped significantly, and if investors are prepared not to chase all winners, it could be a good year.
Complacency Warning
Ben Seager-Scott, chief investment officer at Forvis Mazars, warned that markets could become complacent regarding events in the Middle East.
“Uncomfortable Trade-off”
Charlie Ambler, co-chief investment officer at Saltus, mentioned that central banks are struggling to control long-term interest rates.
Impact of AI Spending
Billy Leung, an investment strategist at Global X ETFs, noted that markets are currently running two main risk discussions.
