How much opportunity is left in the markets? Get a broader perspective from top strategists across the industry—UBS Research Advisory Board

How much opportunity is left in the markets?

Key takeaways:

  • The UBS Research Advisory Board (RAB) brings together diverse investment perspectives from preeminent thought leaders across the industry, from both inside and outside of UBS.
  • Despite current market highs, many on the RAB believe the environment is still conducive to equities, both in the U.S. and globally.
  • When it comes to opportunities, David Bianco of Deutsche Asset Management gives a positive outlook for healthcare stocks, and Heather Miner of Goldman Sachs Asset Management believes the best investment opportunities right now are actually outside of the U.S.
  • Is your portfolio well-positioned for long-term trends? Talk to your UBS Financial Advisor.

Are markets peaking or do they still have room to grow? Are the best investment opportunities still in the U.S. or overseas? What does the current status of the administration’s policy agenda mean for fixed income markets?

While the current markets are strong, uncertainties still lie ahead. UBS CIO Americas, gathered insights from preeminent thought leaders across the industry to offer diverse perspectives and differentiated guidance on critical questions for investors. At a recent event with the 2017 UBS Research Advisory Board (RAB), Anthony Pastore, host of UBS’s On Air and Top of the Morning, interviewed members to get their insights. He asked three key questions: 1) What are the biggest risks facing investors and markets today? 2) What is the biggest opportunity for investors today? 3) What’s your current investment advice in one sentence?

Listen to their answers below:

Ebby Gerry, Portfolio Manager, Head of Municipal Fixed Income for UBS Asset Management, discusses risks and opportunities in the fixed income sector. He recommends investors understand the credit risk in their portfolios, which includes the stress aging Baby Boomers are putting on municipal pensions. Overall, he suggests investing over a long-term horizon.

Joseph Harvey, President, Chief Investment Officer of Cohen & Steers, believes high financial asset pricing is the biggest risk currently. However, the best opportunities for investors include diversifying with listed real assets, especially in infrastructure, for equity-like returns.

David Bianco, Chief Investment Strategist, Head of U.S. Active Equity Management, Deutsche Asset Management, advises investors to be aware of risks of the Fed potentially over tightening monetary policy. He also believes the best opportunities will include U.S. healthcare stocks and investing over the long cycle.

Lyle Fitterer, Portfolio Manager, Wells Capital Management, notes that today’s biggest risk is investors reaching for income, especially in fixed income and additional yield products. The biggest opportunities are investing in Illinois municipalities, particularly in Chicago, which he believes offer a valuable return on risk.

Heather Kennedy Miner, Global Head of Strategic Advisory Solutions, Goldman Sachs Asset Management, points out a few risks including the possibility of slower U.S. policy inroads in tax reform and infrastructure spending, geopolitical threats and cybersecurity concerns. She believes the best investment opportunities lie outside of the U.S., especially within emerging markets.

Is your portfolio prepared for the trends that lie ahead? Together we can find an answer. Connect with your UBS Financial Advisor or find one.