Macro Monthly No painless pivot for risk assets

Global stocks staged a major rebound in July, but is the optimism misplaced? Here, the multi-asset strategy team considers the outlook for equity markets.

Market Updates 04 Aug 2022 2 min read
Authors
Evan BrownLucas Kawa

Highlights:

  • In our view, the recent advance in global equities is a bear market rally, not the start of a new bull run.
  • Earnings expectations do not reflect the retrenchment of goods-sector activity or reduction in household spending power.
  • We believe the Federal Reserve will not shift from tightening to easing without substantial economic pain.
  • Valuations are still on the expensive side, and recession risks are above-average.
  • We are staying underweight stocks and using selloffs in bonds as an opportunity to increase exposure to sovereign fixed income.

Related insights

Read more

Contact us

Introducing our leadership team

Meet the members of the team responsible for UBS Asset Management’s strategic direction.

Find our offices

We’re closer than you think, find out here