Major stock market indices are trading near all-time highs, but their performance does not necessarily reflect the broader market’s overall trends. A significant share of market growth is concentrated in a handful of large companies, while many others are experiencing very different results. In this environment, investment selection is becoming increasingly important, particularly as the cost of capital has risen once again.
The bond market is also undergoing a period of transformation. Growing demand for capital from governments and businesses, partly driven by investments in technology, energy and infrastructure, is helping to keep long-term bond yields elevated. This trend introduces new risks but could also restore the appeal of this asset class.
Another key factor is artificial intelligence, which continues to influence equity markets. Following an initial phase marked by significant investment in the technology sector, attention is now shifting towards companies’ ability to turn these investments into revenue and tangible financial results. AI is also more than just an investment theme: it is becoming a tool to support wealth management. One example is the integration of Sphere, MDOTM’s AI-powered platform, into Banca Profilo’s RoboAdvisor, available through the Tinaba App, with portfolio optimisation proposals reviewed and validated by investment professionals.
Watch the latest interview conducted by Niccolò Enrile, Strategy & Marketing Specialist at Banca Profilo, with Lorenzo Fuscà, Head of Wealth Management at Banca Profilo, to explore the key dynamics shaping financial markets and the role of artificial intelligence in investing.
