According to Jinshi, Wittmann, partner of Swiss financial consulting firm Porta Advisors, said that although geopolitical risks may be intensifying, stocks are still the preferred asset class. He believes that the results of the US election in November are almost irrelevant to the market. Wittmann mentioned the development trend of energy price conditions and issues of international trade and trade routes, believing that these are digestible and any further bad news will have limited impact on asset prices.
Monetary policy became a key driver of a sharp rally in stocks at the end of the year after the Federal Reserve signaled it would cut interest rates at least three times through 2024. The only risk, Wittmann said, is that rates could remain higher for a longer period of time as unforeseen geopolitical risks come into play and inflation is higher than the Fed expects. But he believes that would only be a problem for fixed income and growth stocks, while it would be a positive for value stocks.