Markets have been volatile, with both tech shares and bond yields wobbling – and EMEA CIO Dr. Dirk Steffen says there are a lot of reasons behind it, including political uncertainty.

 

“Let’s not forget we’re heading into a period ahead of the midterm elections and the earnings season,” Dirk says. “I think this is a reason the market is a bit more nervous than usual."

 

The high levels of investments that are going into the AI buildout mean that markets are also increasingly attuned to profitability measures. “All these investments ultimately need to lead to higher revenues and income,” Dirk says, adding that “the markets might focus on the sustainability of these earnings going forward and what's happening in the AI space in terms of monetisation.

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In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S.

The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive.

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