Five months after the U.S. election, reforms of healthcare, infrastructure, and tax legislation have not yet occurred. Far from rising to greater heights, the U.S. dollar has fallen 3% from its post-election peak. And contrary to early headlines, the U.S. administrations’ pro-Russia, anti-China and anti-Fed positions have all changed in the last month: The U.S. antagonized Russia with an airstrike on Syria; the president doesn’t see China as a currency manipulator; and he now says he “likes a low interest rate policy.”
Complex stories don’t always neatly fit into a newspaper headline.
As an investor searching for sound long-term strategies, how do you navigate the differences between extreme predictions and larger, market complexities? CIO Wealth Management Research (CIO WMR) takes a comprehensive approach and looks beyond a simple “risk-on” or “risk-off” investment strategy to offer specific asset allocation guidance in the new UBS House View: Fakenomics ? Given this continually evolving, increasingly complex investment landscape, CIO WMR is:
- Overweight U.S. and global equities vs. government bonds
- Highlighting a preference for the Euro over the U.S. dollar and is neutral on eurozone equities
- Closing its overweight position on 10-year U.S. Treasuries vs. U.S. dollar cash
- Overweight U.S. high-yield bonds vs. government bonds
- Closing its recommended position in a basket of emerging market currencies vs. a selection of developed market currencies.
For more on CIO WMR’s portfolio recommendations, read “Fakenomics? ”.
Is your portfolio prepared for a complex global investment environment? Together we can find an answer. Connect with your UBS Financial Advisor or find one.