UBS

Germany

20 July 2017: FOMO versus FOJI

– Despite headline-grabbing threats to the equity rally, we remained overweight risk during the first half of 2017. Our focus will stay on underlying economic data, strong earnings growth, and ongoing central bank stimulus.

– Striking the right investment balance will become harder in the second half of the year due to Fed tightening and higher equity valuations. Various geopolitical events could also cause investors to demand higher risk premiums.

– We stay overweight global equities, but we close our overweight position in US dollar high yield bonds. This trade has performed well since it was opened at the start of 2017. But a narrowing of spreads means that additional upside now looks limited.

– We add an overweight position in the euro versus the Swiss franc. Markets are anticipating a gradual reduction in the scale of quantitative easing from the ECB. The Swiss franc will be among the losers as this process progresses, given deeply negative real rates and excess liquidity.

Individuals around the world look to UBS to provide them with the advice, expertise and opportunities they need to grow their wealth.

Leading companies and institutions in more than 50 countries rely on our financial resources, expertise and infrastructure to help them grow their businesses, manage their risks and invest for the future.
In Switzerland, we fulfill every kind of banking and investment need, from savings and credit cards to mergers and acquisitions.

See how our unique global presence and capabilities can help you achieve your financial goals. 

We aim to be a leader in sustainability in the financial industry. This requires us to focus on the long term and to work to provide consistent returns to our stakeholders. It also requires us to promote the common good by being proactive, purposeful and accountable. Our key program in this regard is UBS and Society – a cross-divisional umbrella platform covering all our activities and capabilities in sustainable investing and philanthropy, environmental and human rights policies that govern client and supplier relationships, managing our own environmental footprint, as well as our firm’s community investment.

UBS fosters a development and learning culture that creates opportunities for every employee to grow as an individual and provides a platform to empower them professionally. Despite the size and scope of the organization, you'll see that you work for a firm that values you as an individual.