Ignore, adjust, or abort

UBS House View «August 2019»

After a decade of work, it all came down to an “ignore, adjust, or abort” decision in the final moments. As Neil Armstrong and the Apollo 11 crew prepared for their descent to the moon’s surface, an alarm sounded. A quarter of a million miles away, Mission Control worked out the problem, and deduced that the alarm could be safely ignored. The result was the historic lunar landing, fifty years ago this month.

  • A Federal Reserve rate cut raises the question of “Japanification.” Yet markets may be overestimating how much central banks will cut.
  • The trade conflict is impacting economic data and global supply chains. However, we don’t expect a resolution in the near term.
  • In our view, a lower-for-longer rate environment will be supportive of carry trades and income enhancement strategies.
  • We increase our overweights in euro investment grade bonds and emerging market dollar denominated sovereign bonds. We also add more carry through high-yielding emerging market currencies.

UBS House View Investors Guide

Our publication "UBS House View" gives you a compact overview of UBS's opinions on the financial markets. Drawing on our global investment and research capabilities, it aims to offer you the best, most up-to-date investment guidance.

 

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