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Ricardo Castillo, head of investments at Mirabaud Wealth Management, is advising clients to focus on diversification and portfolio resilience as global markets navigate policy uncertainty, valuation questions and geopolitical risks.
Castillo, who joined Mirabaud Group last summer 2025, oversees discretionary management and advisory activities at Mirabaud & Cie SA and chairs the investment committee. He reports to Camille Vial, CEO of the Bank.
“We are wealth managers, not traders,” Castillo said in a recent interview with Finews. “Our job is to help people navigate this environment. For us, this year is all about diversification. No one knows what will happen six months from now.”
Federal Reserve policy under review
The nomination of Kevin Warsh as chair of the Federal Reserve has prompted discussion about potential changes to monetary policy and the central bank’s balance sheet. Castillo characterized Warsh as an experienced and credible figure and does not anticipate abrupt short-term policy shifts.
“Warsh won’t stage a revolution in the next six months,” Castillo said, noting the Federal Reserve’s collegial structure and the constraints imposed by market expectations.
Mirabaud Group does not expect significant changes in short-term rates in the near term. Castillo indicated that balance sheet management remains a longer-term issue that would require coordination across institutions.
A measured view on Europe and Switzerland
Castillo described Mirabaud Group’s outlook on Europe as constructive but moderate, pointing to Germany’s investment initiatives as a supportive factor.
“We have a positive view on Europe,” he said. “Growth is modest, and we expect the stimulus from Germany’s investment plans to be a boost for the economy.”
He noted that inflation in the European Union appears contained and that consumer confidence has shown gradual improvement.
Regarding Switzerland, Castillo expects relative stability despite global pressures.
“We expect a stable Swiss economy,” he said, adding that Switzerland continues to navigate its international relationships independently.
While the Swiss franc remains structurally supported by the country’s fiscal position, Castillo acknowledged that cyclical developments could influence short-term dynamics.
Preparing for shocks through diversification
Recent geopolitical tensions in the Middle East have also contributed to heightened market sensitivity, particularly in energy markets and currency movements. Castillo noted that such developments reinforce the importance of maintaining diversified exposure across asset classes and regions rather than reacting to short-term headlines.
Castillo’s central message to clients is to avoid excessive concentration in individual sectors or indices.
“You don’t want to be overexposed to certain assets, such as the Nasdaq 100,” he said. “You don’t want to put all your eggs in one basket.”
He emphasized that diversification serves both valuation discipline and risk management.
“We want to make sure we are sufficiently prepared,” Castillo said. “If there is a shock, we won’t be in shock. We could get hurt — we know that. But if we are properly diversified, that’s okay.”
Artificial Intelligence: Structural shift, not speculation
Addressing concerns about artificial intelligence valuations, Castillo framed AI as a long-term productivity transformation rather than a short-term speculative trend.
“AI is first and foremost a technological revolution that will boost productivity and reduce costs,” he said.
He noted that major technological transitions historically involve public-sector participation and long investment horizons. While valuation adjustments are always possible, he indicated that leading companies appear positioned to absorb volatility.
“It’s very basic advice,” Castillo said, “but sometimes it’s good to get back to basics.”
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