Overweight eurozone and Japanese equities; underweight emerging markets

Market volatility is up, and global equities are down 13% from their peak in June. But it doesn’t mean we’re on the verge of a recession—or that central banks have lost their ability to shore up the global economy. According to the latest UBS House View (PDF, 1 MB), recent disappointing data likely reflect a mid-cycle slowdown, with an upside on the horizon.

What can you expect?
The Chief Investment Office Wealth Management Research (CIO WMR) believes improving numbers in the U.S. and a gradual recovery in China should help restore investor confidence in global growth and push developed market equities higher.

What should you do?
CIO WMR recommends investors remain well-diversified and take a pro-risk stance, despite potential market volatility before the next Fed meeting, preferring:

  • Eurozone equities
  • Japanese equities
  • U.S. small-cap equities
  • U.S. investment-grade corporate bonds

To learn more, connect with your UBS Financial Advisor or find a UBS Financial Advisor.

Join us as Mike Ryan, Chief Investment Strategist for Wealth Management Americas, leads this fully interactive discussion featuring the latest on our market views and investment strategy guidance on the first Thursday of every month at 1:00 p.m., ET / 10:00 a.m., PT.

Next call: Thursday, October 1, 2015
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*The views expressed on the call 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.