"We're on a rollercoaster of AI disruption with geopolitical risks adding to the uneasy ride. Sell-offs have rocked markets as artificial intelligence tools and services threaten to disrupt sectors. High geopolitical tensions have also been the theme so far this year, with the ongoing US military build‑up in the Middle East, while the assault on Venezuela and January's stand‑off over Greenland are still front of mind."
"70% of investors surveyed by Wealth Club saw global tensions as the biggest threat to portfolios. Two-thirds were concerned about the risks of an AI bubble. As the tax year-end approaches, investors will be seeking defensive strategies—such as diversification, hedging, or alternative assets—to protect their money from geopolitical and AI-related risks."
"Growth opportunities are more likely in technology hardware than in software, given AI disruption. Investments offering opportunities in volatile times include Brookfield Infrastructure Corporation, Swedish investment company Investor AB and multi-asset fund Troy Trojan."
High-net-worth investors face dual threats from geopolitical tensions and AI disruption concerns. Seventy percent of surveyed investors identify global tensions as the biggest portfolio threat, while two-thirds worry about AI bubble risks. AI advances have triggered significant sell-offs in software, wealth management, and cybersecurity sectors. Geopolitical concerns include US military presence in the Middle East, tensions with Iran, and economic uncertainty from tariff impacts. Investors are adopting defensive strategies including diversification, hedging, and alternative assets. Technology hardware presents better growth opportunities than software due to AI disruption. Recommended investments for volatile periods include Brookfield Infrastructure Corporation, Investor AB, and Troy Trojan multi-asset fund.
#geopolitical-risk #ai-bubble-concerns #portfolio-diversification #defensive-investment-strategies #market-volatility
Read at London Business News | Londonlovesbusiness.com
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