Week of 19 - 23 January 2026 |  Geopolitical swings in the spotlight in Davos 

In this edition of Amundi's Weekly Market Directions: 

• In Davos, Canadian PM Carney warned that mid sized countries must develop a system to replace the US centric global order.

• One year after Trump's inauguration, geopolitical risk is back in focus, along with the need to hedge against it. 
 
• Diversification away from US assets will be driven by structural trends, such as rising US deficits and global central banks diversifying their reserves into non dollar denominated assets. 

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Monica Defend

Monica Defend

Head of Amundi Investment Institute

“The World Economic Forum in Davos confirmed that the familiar, established global order is over. Instead, a phase of controlled disorder — and persistent market volatility — lies ahead. Investors could mitigate this volatility through diversification and safeguards such as gold.”

Monica Defend, Head of Amundi Investment Institute

Read the full weekly market directions

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 27 January 2026. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
 

Date of first use: 27 January 2026

Doc ID: 5152190