Mark Haefele

The market is transitioning to a higher nominal growth world where equities outperform. A broadening of the rally is expected once energy costs decline. Portfolios should tilt more toward equities, including small and mid-caps.

AI capital expenditure is surging towards $1 trillion by 2028 with no signs of abatement. Memory shortages persist, and the scale of AI spending dwarfs the economic impact of oil. This supports a bullish view on the semiconductor sector.

Oil prices can fall further as the Strait of Hormuz reopens. Iran's ability to keep the strait closed is degrading, and there is broad international pressure to keep it open. The geopolitical risk premium is fading.

Gold remains a strategic hedge against de-dollarization, weaponization of the US dollar, and sanctions. Central bank buying and client interest in dedollarization support the gold trade over the long term.

Speaker stated the firm is repositioning "into equities... more in Switzerland and European health care." In a climate of uncertainty and potential demand destruction, defensive sectors like healthcare are favored. Swiss assets may offer a perceived quality or stability haven. Explicit addition to these areas signals a bullish, defensive rotation within a broader equity repositioning strategy. A severe global economic downturn impacts healthcare budgets and earnings; Swiss franc strength hurts export-oriented companies.

Speaker stated the firm is repositioning "into equities... more in Switzerland and European health care." In a climate of uncertainty and potential demand destruction, defensive sectors like healthcare are favored. Swiss assets may offer a perceived quality or stability haven. Explicit addition to these areas signals a bullish, defensive rotation within a broader equity repositioning strategy. A severe global economic downturn impacts healthcare budgets and earnings; Swiss franc strength hurts export-oriented companies.