The Year of Choices. The Decade of Transformation.

Year Ahead 2020 – UBS House View

19 Nov 2019

Key takeaways

  • Investors are concerned about geopolitics and volatility, but there are sound strategies that can help you navigate the year (and decade) ahead
  • Our research partners recommend filtering out the political noise, investing in high-quality stocks tied to consumer spending and diversifying globally
  • Investors are optimistic about the decade ahead. Our strategists offer themes where we see the biggest potential for gains—digital transformation, genetic therapies and water scarcity

According to our recent UBS Investor Watch survey, investors are cautious about the year ahead. They're concerned about market volatility, global trade and geopolitics, yet embrace the decade ahead with optimism.

But what does our Chief Investment Office say? The Year Ahead 2020 offers insights that could address many of your concerns. For example, our investment strategists say that, while geopolitics are important, economics likely has the biggest impact on portfolios.

Against this backdrop, our strategists recommend diversifying globally while choosing domestic and consumer-focused companies that are likely to provide more reliable returns than those exposed to trade and business spending. And to protect against uncertain politics, we suggest diversifying your portfolio and including high-quality stocks, preferably tied to consumer spending.

79% of investors think we'll see more volatility in 2020*

We believe…

Only a 10-15% chance of recession in 2020

44% of investors are concerned about the US-China trade conflict*

We say…

69% of US business revenue is generated solely within the US

88% of investors want to align their portfolios with future trends*

We see...

6 major trends in the next decade

Find out how you can seize growth opportunities

Explore the insights of Year Ahead 2020

We also found investors are much more optimistic about opportunities in the future. Our research partners identify 6 transformational trends—including de-globalization, demographic change and environmental action—which are expected to have the biggest impact on investors and the world in the decade ahead. 

But to successfully balance the risks with long-term opportunities, our strategists recommend having a robust financial plan that accounts for your needs at different stages—for today, tomorrow, and for generations to come. Our Liquidity. Longevity. Legacy. framework can help reduce anxiety about current risks while allowing you to pursue the opportunities of the future. Find out more. 

Connect with your UBS Financial Advisor

Do you have a clear direction for the year (and decade) ahead?

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Disclosure

* Source: UBS Investor Watch on the Year Ahead, “Decisions, decisions,” November 2019

Timeframes may vary. Strategies are subject to individual client goals, objectives and suitability. This approach is not a promise or guarantee that wealth, or any financial results, can or will be achieved.

Research from CIO Americas, Wealth Management is provided by UBS Financial Services Inc. UBS Financial Services Incorporated of Puerto Rico is a subsidiary of UBS Financial Services Inc.  In Canada, CIO Wealth Management Research is provided by UBS Investment Management Canada Inc.

The views expressed in the research provided do not constitute a personal recommendation or take into account the particular investment objectives, investment strategies, financial situation and needs of any specific individuals. They are based on numerous assumptions. Different assumptions could result in materially different results. We recommend that you obtain financial and/or tax advice as to the implications (including tax) prior to investing.

UBS Financial Services Inc. is registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser and a broker-dealer. UBS Financial Services Incorporated of Puerto Rico is registered as a broker-dealer.

As a firm providing wealth management services to clients, we offer both investment advisory and brokerage services. Advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate contracts. It is important that you carefully read the agreements and disclosures UBS provides to you about the products or services offered. For more information, please review the PDF at ubs.com/workingwithus.