Amidst rising geopolitical tensions, this news service visited Paris this month to meet Edmund Shing at BNP Paribas Wealth Management.

After joint US-Israeli attacks on Iran sparked a conflict causing oil prices to surge, Edmund Shing (pictured), global chief investment officer at BNP Paribas Wealth Management, said that the increased need for energy security has accelerated the energy transition. He is  still positive on the outlook for gold and emerging market equities, despite volatility arising from the conflict.

Emerging markets outperformed developed ones in 2025, driven by a weaker US dollar, stronger relative earnings revisions and improving return on equity (ROE). Corporate governance has also been improving in the region. However, the conflict in Iran has sent oil prices to new highs, sparking inflation risks, strengthening the dollar, and making emerging market assets and oil importers vulnerable.

Nevertheless, Shing is still positive on the outlook for emerging market equities. He noted that despite the conflict and the shift away from US equities in 2025, Europe has still been performing slightly better than the US since January: “Emerging markets and Japan are also still outperforming the US.” 

He is not alone in his views. “Despite recent volatility from geopolitical tensions and higher oil prices, we maintain a constructive outlook on emerging market equities, supported by resilient fundamentals and exposure to structural growth trends like AI and memory demand,” Laura Smith, analyst, and Alejo Czerwonko, chief investment officer for Emerging Markets Americas at UBS Global Wealth Management, said in a note yesterday.

Despte the conflict, a number of investment managers, such as M&G Investments, are positive about the outlook for emerging markets. Samy Chaar, chief economist, CIO Switzerland at Swiss private bank Lombard Odier, is also remaining invested in Asia, which makes up 70 per cent of emerging markets.

“US tech has not been performing that well while Korea-based semiconductor memory manufacturer SK Hynix and Samsung Electronics have done very well,” Shing continued. “We have reduced our exposure to US tech in favour of emerging markets and Japan.” Japan is strong on robotics, he continued, with twice as many robots as in the US and Europe to offset its ageing population.

Although Japan is one of the world’s largest importers of oil, mostly from the Middle East making it vulnerable to the conflict, Shing said that it has plenty of stocks to keep it supplied for the next three to six months. China and Japan have been developing their own energy supplies. While China still relies on fossil fuels, it produces more than 80 per cent of all solar photovoltaic panels, half of the world’s leading electric vehicles and a third of its wind power. "France is also strong on energy security, notably nuclear energy and solar power," he added.

The conflict has increased the importance of energy security, accelerating the energy transition. “Energy security will be a big focus for governments,” Shing said. “UK equities are also doing well, mainly due to Shell and BP.”

As geopolitical tensions meet rising energy demand, Lombard Odier also thinks that the momentum behind renewable technology will accelerate, reinforcing its convictions in sustainable energy. In the future, economic needs and a push for greater autonomy will support investments in energy, food and water security.

With regard to sectors, Shing likes banks, mining, healthcare, financials, and commodities. Silver, copper and tin are needed for artificial intelligence, tech and renewables. "Infrastructure is also popular," he said.

“We like Latin America such as Mexico and Brazil that are strong on commodities,” he added. He still likes gold – a safe haven which has been reaching record highs. Prices have fallen during the conflict but Shing believes that they should go up again.

This was echoed this week by Alejandro Bondavalli, senior investment manager at Pictet Wealth Management, who believes that gold offers a compelling proposition for investors seeking wealth preservation and intergenerational resilience. He views the recent pullback as an opportunity to adjust strategic exposure and tactically position for a recovery.

Yesterday, Mark Haefele, chief investment officer at UBS Global Wealth Management, said that while geopolitical conflicts and market volatility can tempt investors to try to time their market entries and exits, history and statistics show that this approach is fraught with risk: “We maintain the view that staying invested with a well-diversified portfolio is the best way to capture long-term market growth, and investors can consider gold.” See more about the precious metal here.