Maintain overweight for U.S. equities, high-yield credit and the U.S. dollar 

The S&P 500 currently sits at the top of the leaderboard for major global equity markets and the U.S. dollar has outperformed almost every major currency in 2014. In a world continuing to diverge, the U.S. stands out, according to the Chief Investment Office Wealth Management Research (CIO WMR) in the latest UBS House View—U.S. growth: Lost in translation  (PDF, 1 MB).

U.S. reasserts its global economic leadership

The reasons for U.S. growth include bold monetary policy decisions by the Federal Reserve, a 2009 bank stress test and the U.S. energy independence revolution. However, robust U.S. growth hasn’t come without its caveats. Government debt remains high, wages are stagnant in some industries, and wealth inequality continues to rise.

Nevertheless, the rest of the world is looking to the U.S. to lead. The Eurozone needs to implement the same credible policy actions as the U.S. did. Japan’s recovery is faltering. And among emerging markets, there is more optimism for countries taking steps toward economic reform (India and China) over those that are not (Brazil and Russia).

What should investors do?

CIO WMR maintains overweight positions across an array of U.S. assets—U.S. equities, U.S. high-yield credit, and the U.S. dollar. And due to improving conditions in Canada, CIO WMR adds to an overweight position in the Canadian dollar relative to an increased underweight position in the Swiss franc.

To understand more about how these trends may impact your individual investments and strategy, connect with your UBS Financial Advisor or find a Financial Advisor.

Join us as Mike Ryan, Chief Investment Strategist for Wealth Management Americas, leads this fully interactive discussion featuring the latest on our market views and investment strategy guidance on the first Thursday of every month at 1:00 p.m., ET / 10:00 a.m., PT.

Please note that this month's UBS House View call will be dedicated to CIO Year Ahead 2015

Next call: Thursday, February 5, 2015
U.S. dial in: 1-855-827-6587 (1-855-UBS-MKTS)
Verbal passcode: MARKET

Listen to the replay from our December 5, 2014 call:
Dial in: 1-888-203-1112
Passcode: 6180049

*The views expressed on the call do not constitute a personal recommendation or take into account the particular investment objectives, investment strategies, financial situation and needs of any specific individuals. They are based on numerous assumptions. Different assumptions could result in materially different results. We recommend that you obtain financial and/or tax advice as to the implications (including tax) prior to investing.