Matthias Ramser, Chief Investment Officer, Reichmuth & Co Privatbankiers:

(Image: Courtesy)

The flip side of the exceptionally strong 2025 market is high valuations – especially in the U.S. – and increasing concentration in a few tech giants.

This dominance shapes the indices and introduces risks, yet it does not qualify as a classic bubble. Leading firms remain highly profitable, with solid balance sheets and strong cash flows – a clear contrast to conditions around the year 2000.

«The U.S. share of the global equity index, currently above 60 percent, is likely to fall gradually – making regional diversification increasingly important.»

Two structural trends will define the years ahead: first, continued U.S. dollar weakness, part of a new economic doctrine in Washington that shifts global capital flows; second, accelerating regionalization of the global economy.

With the U.S. effectively stepping back from its security umbrella over Europe, regional self-reliance is coming to the forefront. The U.S. share of the global equity index, currently above 60 percent, is likely to fall gradually – making regional diversification increasingly important.

The environment remains generally equity-friendly. Global growth is resilient, fiscal policy remains expansionary, and the global rate-cutting cycle is not yet complete.

In the U.S., AI investment and pro-business policies support growth. Europe benefits from spending on energy, defense and infrastructure. New trade routes are forming in Asia, and China is assuming technological leadership in multiple areas.

Investors who target these local drivers and remain mindful of periodic corrections can view them as opportunities – and succeed even in a multipolar world.

Read next: Nannette Hechler-Fayd’herbe, Head of Investment Strategy, Sustainability and Research, Lombard Odier.