UBS CEO: The market is overly optimistic about the Iran conflict

Golden Ten Data reported on April 29 that UBS Group CEO Sergio Ermotti stated there is an excessive optimism risk in financial markets regarding the Iran conflict. “The market is not only expecting the situation to be resolved, but also anticipating the consequences to be dealt with in a conventional way.” Despite the ongoing escalation of the Iran conflict and no signs of a sustainable solution, the US stock market has already reached all-time highs. He said, “The market is rather optimistic, and hopefully that proves to be correct.” He also emphasized that diversification of allocation can hedge against potential reversal risks. Ermotti also spoke about Switzerland’s new capital regulatory framework entering parliamentary review. He dismissed claims that UBS is aggressively lobbying Swiss lawmakers for lighter regulatory requirements. “We are not engaged in aggressive lobbying,” he said. “We are simply representing shareholders’ interests.”