UBS CEO Sergio Ermotti said Wednesday that investors may be underestimating the risks facing markets, pointing to a growing mix of geopolitical tensions and economic uncertainty.
"There has been a level of complacency in financial markets in the last few years," Ermotti said in an interview with CNBC. He noted that the current environment would typically be expected to produce significantly greater volatility.
The UBS chief warned that investors are facing a complex scenario due to several headwinds.
However, he added that even though markets have seen occasional moments of volatility, strong investment in AI, data centers, and other new technologies has helped back economic growth and financial markets.
Geopolitical Risk Continues to Mount
