Investment market volatility is ‘here to stay’ unless global recession strikes: analyst

Rich investors put on notice as AI advancement and geopolitical risks continue to change market structure, causing instability, says Nomura

But volatility came after changes to the market’s structure “over the decades” and was expected to be “here to stay”, said Julia Wang, North Asia chief investment officer of Nomura International Wealth Management, in an interview with the South China Morning Post.

While Wang reaffirmed Nomura’s positive outlook on AI and the global economy, AI was one of the key pushes behind the ups and downs.

She explained that expectations for outperforming gains from the future productivity driver resulted in crowded trading and leverage, which usually would be followed by market sell-offs.