UBS is advising investors to maintain a full strategic allocation to U.S. equities, even after the recent market rally and Friday’s U.S. credit rating downgrade by Moody’s to Aa1.
In a note published Monday, the bank clarified that its recent downgrade of U.S. equities from “Attractive” to “Neutral” reflects short-term valuation concerns, not a bearish outlook.
“We continue to recommend a full strategic allocation,” UBS wrote. “Earnings season highlighted the resilience of structural AI trends, and we expect U.S. stocks to move higher over the next 12 months.” The bank remains overweight on communications services, information technology, health care, and utilities.
I would have thought neutral would mean less than a full allocation. Maintaining "full strategic allocation" despite trimming its outlook seems convoluted reasoning to me. But, hey, maybe that's why they get paid the big $$$?
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( UBS once again recommends "a full strategic allocation" to US equities )
Also on site :
- Billboard’s 2025 Global Power Players Revealed
- Meghan Markle shares unseen family photos on seventh wedding anniversary to Prince Harry
- Are US-Israel ‘special relations’ about to end?