In recent months, trade tensions between the US and its trading partners have begun to ratchet up. Even though the impact of the tariffs that have been implemented so far is relatively small, the risk of further escalation continues to rise.
In order to account for the risk of choppier waters ahead, while still benefiting from a backdrop of strong economic and earnings momentum, we are making a few tactical changes this month. First, we are reducing the size of our global equity overweight, in order to bring our overall allocation closer to a neutral-risk position. Second, we are making a small change to our sector strategy: upgrading utilities to neutral and moving to an underweight allocation to industrials.
UBS House View
For live insight from the CIO team, join our monthly call.
Date: August 2, 2018
Time: 1:00 PM ET
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Mike Ryan, CFA
Chief Investment Officer Americas,
Global Wealth Management