UBS CEO's latest viewpoint: Geopolitical unrest may continue for ten years, technology stock valuations still need adjustment.

UBS Group AG CEO Sergio Ermotti stated that global political turmoil is driving clients to adjust their investment portfolios, benefiting UBS Group AG's business in the process, and he expects this trend to continue in the coming years. Ermotti said in an interview, "The political and macroeconomic uncertainty GEO Group Inc is causing market volatility, and I firmly believe that in the next decade, we will all have to face this reality." He noted that this situation is prompting clients to adjust their geographic investment allocations, reducing their exposure to US assets in the future. "I'm not talking about withdrawing, reducing, or selling US assets, but rather utilizing idle liquidity for investment diversification." Ermotti stated that UBS Group AG has trading and booking centers around the world to provide services for clients, and as a result, is benefiting from these client adjustments. Regarding the recent global sell-off of software and tech stocks, the CEO responded that the valuation in these sectors still needs some "adjustments." "It's obvious that some sectors are overvalued," but he also said that the societal changes led by artificial intelligence (AI) will have far-reaching impacts, and "in this process, there will be winners and losers in the industry." Ermotti also revealed that there are still 150,000 of the most complex clients yet to be migrated within Switzerland, and once the migration is completed, UBS Group AG will shut down Credit Suisse's related IT systems and data centers. It is reported that the integration of Credit Suisse, acquired by UBS Group AG for $3 billion in 2023, is in its final year. Finally, Ermotti reiterated that the UBS Group AG board of directors is evaluating external candidates for the CEO succession, while emphasizing that he will remain in his position at least until 2027.