LGT calls for disciplined investing amid market volatility

LGT Private Banking Asia Pacific expects global risk assets to gain traction this year, but cautions that investors should be prepared for a more volatile and uneven market, advising disciplined portfolio construction and active risk management.

- NUNTAWUN POLKUAMDEE

According to Stefan Hofer, managing director and chief investment strategist for global investment services, developments in Venezuela, Iran and Greenland highlight a more fragile global landscape, where sudden shifts in sentiment could trigger faster market rotations than in previous cycles.

While the broader investment environment remains constructive, volatility and policy-driven market swings are likely to become a structural feature of 2026, he said.

Against this backdrop, LGT continues to favour US equities as a core portfolio allocation, supported by resilient corporate earnings and an accommodative policy environment. Japanese equities also remain attractive, underpinned by ongoing corporate governance reforms, solid earnings momentum and a sustained exit from deflation.

In Asia-Pacific, LGT sees selective opportunities, particularly in China, where targeted exposure offers a more compelling risk-return profile than broad market allocations.