Victor Zhang, the firm's chief investment officer, notes that rising geopolitical tensions are rendering the fixed-income environment increasingly unpredictable. Charles Tan, global fixed income CIO, highlights two specific tail-risk scenarios: a potential cyclical rebound in the U.S. economy that could force the Federal Reserve to resume tightening, and a downside risk involving prolonged blockages at the Strait of Hormuz that would pressure global growth while limiting the capacity for policy intervention.

Beyond managing these threats, the firm advocates for looking past the crowded AI-led trade. Investment leaders point to emerging markets, renewable energy, and global supply chain diversification as fertile ground for growth. Patricia Ribeiro, global equity co-chief investment officer, suggests that emerging markets are poised to benefit from favorable demographics and increased capital expenditure in sectors ranging from electric vehicles to solar infrastructure. Despite the heightened volatility, the firm maintains that investors should prioritize long-term objectives—such as retirement and education funding—over reacting to short-term market fluctuations.