Bhaskar Laxminarayan, chief investment officer for Asia and the Middle East, suggests that investors should treat market volatility as a tactical entry point. While rising oil prices recently rattled inflation expectations, the firm notes that corporate earnings remain robust. The investment thesis centers on a structural pivot toward high-demand sectors, specifically defense, energy, and AI infrastructure.
Mark Matthews, head of research for Asia, points to a broadening landscape of opportunity. While the US currently leads the rally, Japan, South Korea, and China are anchored as essential components of the global AI value chain. Matthews specifically cites Japanese corporate governance reforms and strong earnings revisions as key indicators of continued growth. Beyond tech, the bank is tilting toward communications and financials, citing compelling valuations and the defensive nature of telecommunications operators.
Fixed income strategies are also shifting. Julius Baer advises extending duration on bond portfolios when US 10-year Treasuries hover near 4.5 percent, aiming to capture yield before potential easing. Meanwhile, gold remains a preferred safe-haven asset, buoyed by consistent central bank demand. Despite the optimism, the firm warns that risks—ranging from potential policy errors and AI overspending to further trade tensions—require a selective, high-conviction approach to both public and private markets.
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