Easing tensions in the Middle East are providing relief for energy prices and curbing inflation. We are raising the equity allocation and increasing our holdings of Swiss stocks. Comparatively high costs have prompted us to hedge the US dollar slightly less than before. We remain cautious when it comes to bond investments.

The blockade of the Strait of Hormuz continues. The conflict with Iran is dragging on. The result is growing worries about growth. Nevertheless, equity investments retain a high weighting in the portfolio – even on a tactical basis. We see opportunities in US equities and Swiss yield stocks. What matters is being selective.

Although financial markets began the new year with a tailwind, the backdrop remains challenging. Dynamic developments in the tech sector continue to drive repeated bouts of volatility, while economic activity and corporate earnings are supportive of risk assets. In addition, the escalation in the Middle East is likely to add uncertainty. The strong market swings show clearly that risk-mitigating diversification remains important.

The events of the last 12 months have once again brought it home to investors that a broadly diversified portfolio offers good protection in times of political uncertainty and general market turbulence. Our “Review & outlook” publication provides you with in-depth information on our assessments of possible developments over the coming year.

Equity markets have held up well in 2025 – despite high tariffs, wars and plenty of uncertainty. “Driving on sight” will continue to be important in 2026. Positive stimuli thanks to monetary policy, economic programmes and solid corporate profits will be competing against political uncertainty and high investor expectations.

An exciting, opportunity-laden investment year is drawing to a close. Financial markets have remained remarkably resilient in the face of geopolitical turbulence and a hyperactive US administration. Economic momentum is subdued, yet companies are doing well. Equities remain our no.1 choice.