UBS(US:UBS) Investopedia·2026-01-20 21:02Core Insights - UBS CEO Sergio Ermotti indicated that there is no clear end to the volatility in financial markets, which he described as "quite abnormal" given the lack of significant market impact from recent trade tensions and conflicts [1][5] - Investors' risk appetite is reverting to historic norms, particularly in light of the White House's threats to impose tariffs on nations opposing U.S. control of Greenland [1][3] Market Sentiment - The level of news is beginning to affect client sentiments, with Ermotti noting that there is a threshold of news that can influence investor behavior [2] - The stock market experienced a rebound after a significant drop around Liberation Day last April, but it remains uncertain if the current volatility is merely short-term noise or indicative of a more substantial shift [2] Investor Behavior - Investors are becoming more cautious, opting to retain cash and diversify their portfolios carefully, as finding well-priced assets across any class is challenging [3] - Major stock indexes fell while gold and silver prices reached new highs, reflecting investor reactions to President Trump's comments regarding Greenland [3] Future Outlook - Ermotti expressed that skittishness among investors is unlikely to diminish until there are resolutions to ongoing trade disputes and geopolitical issues, stating that he does not foresee a path to normalization in the near future [4] - The continuation of volatility is expected until trade tensions, tariff issues, and geopolitical concerns, including those related to Greenland and Ukraine, are resolved [4]