Gabrielle Wanzenried, Professor of Finance, HES-SO University of Applied Sciences Western Switzerland:

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It is unlikely that markets will maintain their record pace into 2026.

Too many indicators show that valuations have detached from underlying economic fundamentals. The Buffett indicator – one of several proven valuation metrics comparing market cap to GDP – has historically been a reliable warning of overheated markets. Corporate earnings are flat, yet investors increasingly ignore risks. Rising gold prices also signal renewed demand for safety.

«The key question is no longer whether the rally ends, but when.»

Economic warning signs are mounting. PMIs in several industrial economies are now below the growth threshold, and in Switzerland weakening order books point to a cooling real economy. Despite solid balance sheets and strong labor markets, Switzerland remains vulnerable due to new U.S. tariffs and a strong franc. The UBS Global Real Estate Bubble Index adds further caution for the property sector.

The key question is no longer whether the rally ends, but when. Investors who maintain valuation discipline, secure profits judiciously and pay attention to real-economy signals will not be surprised by the next correction but prepared for it – staying calm when gravity returns to markets.

Read next: Heinz Zimmermann, Professor of Financial Market Theory, University of Basel.