UBS CEO says there is no choice but to keep investing in U.S. assets

LONDON, Jan 21 (Reuters) - UBS CEO Sergio Ermotti said on Wednesday that the world had no choice but to keep investing in the U.S. dollar and U.S. assets despite rising geopolitical tensions, noting that there were only "pockets" of investors reducing their exposure to the country.

"It is almost impossible for a big chunk of the system to bet against the dollar. There is no choice but the dollar," the Swiss bank's CEO told a panel at the World Economic Forum in Davos. "Diversification is now even more important...but for the foreseeable future there is no alternative [to the U.S.]."

He also said that while the AI investment boom would not go bust "some investors will suffer", particularly those trying to stock pick AI companies.