Market volatility has become a persistent feature rather than an occasional exception for the investment landscape in 2025 and 2026.

As global geopolitical tensions persist and the Middle East situation remains uncertain, concerns about stagflation have resurfaced across markets.

In response to this environment, the firm's strategy is to focus on valuations, diversify investments, and maintain flexibility.

The portfolio centers on stable, long-term return drivers while preserving the agility to adjust investment positioning flexibly in response to evolving inflation trends, central bank policies, and geopolitical risks.

Stagflation is undoubtedly a major concern for the market at present.

Heightened geopolitical tensions in the Middle East have pushed up energy prices; if this trend continues, it could elevate short-term inflation, dampen consumer confidence, and consequently hinder economic growth.

Nevertheless, investors should not focus excessively on downside risks, as some favorable scenarios are also worth noting.

For instance, a breakthrough in US-Iran negotiations, coupled with increased oil production by the UAE outside the OPEC framework, could trigger a decline in oil prices, thereby giving central banks more room to cut interest rates flexibly.

The firm believes that investment objectives can differ significantly between the golden decade before retirement and the decade after.

However, regardless of the primary goal, the recent severe market turbulence reaffirms that proactive and flexible asset allocation is indispensable in retirement planning.

The firm actively adjusts the balance between growth and defensive assets, utilizing liquid investment tools to pursue ideal capital appreciation and income while efficiently managing specific risks.

Diversification across asset classes helps generate returns and protects capital from being eroded by inflation.

Currently, the firm is closely monitoring investment opportunities arising from robust artificial intelligence growth, fiscal policy support, and the increasing diversification of global central bank reserves.

This includes selectively positioning in core sectors within US and Asian technology stocks that stand to benefit from the AI value chain.

Although equity markets are currently at historical highs, stronger-than-expected corporate earnings make overall stock valuations appear more attractive.

Within the AI investment theme, the next wave of opportunities will heavily depend on the ability to accurately identify the major winners and key beneficiaries across the broader AI value chain.

Areas of interest encompass hardware, infrastructure development, data centers, and power solutions, which are essential foundations for driving AI proliferation.

Given the cloudy macroeconomic outlook, income-generating assets and high-quality defensive allocations, including European credit assets, remain important pillars of investment.

Furthermore, the recent escalation of tensions in the Middle East has refocused market attention on alternative energy and energy transition-related sectors, which offer the dual advantages of risk diversification and structural growth.

Geopolitical fragmentation, divergent policy paces across regions, economic growth and inflation environments, coupled with the rapid evolution of technology and innovation, are set to continue reshaping the global investment market landscape in 2026 and beyond.

Understanding how these factors interweave and manifest in market performance, while maintaining an active, flexible, and cross-asset investment strategy, will be the key to success in the future.