Full Breakdown
Wealthy Investors Face Prolonged Market Volatility Amid AI and Geopolitical Uncertainty
8/24/2026, 8:52:04 AM
Elevated Volatility Expected for Years
Julia Wang, North Asia chief investment officer of Nomura International Wealth Management, warns that heightened market volatility is likely to persist for an extended period. She attributes the trend to structural shifts in market dynamics that have unfolded over decades, noting that only a global recession could substantially alter the pattern.
Drivers: AI Hype and Geopolitical Uncertainty
According to Wang, the rapid development of artificial intelligence (AI) is a primary catalyst for recent market swings. Expectations that AI will deliver outsized productivity gains have led to crowded trades and increased leverage, conditions that typically precede sell-offs. In parallel, ongoing geopolitical risks add another layer of uncertainty, reinforcing the outlook for continued turbulence.
Structural Market Changes Underpin Volatility
Wang emphasizes that the current volatility is not a temporary anomaly but a consequence of long-term changes to market structure. These alterations have reshaped how assets are priced and traded, making periodic spikes in volatility an inherent feature of the modern financial environment.
Implications for High-Net-Worth Investors
Nomura’s analysis targets clients with at least US$20 million in investable surplus. For this cohort, the firm advises heightened preparedness for market swings, including diversified portfolios and risk-management strategies that can withstand prolonged periods of instability.
Nomura’s Outlook and Recommendations
While acknowledging the challenges, Wang reaffirms a positive outlook for both AI and the broader global economy. She suggests that investors view AI as a long-term growth driver, even as they navigate the near-term volatility it may provoke. The firm’s stance underscores the importance of balancing optimism about technological advancement with prudent risk mitigation.
