UBS - UBS Expects Some Stock 'Slip-Ups' In Near Term But Says 'Direction Of Travel For The Rest Of The Year To Be Higher' | Benzinga
The stock market is set to continue its upward trajectory, according to UBS. The financial services giant has outlined four key factors that are expected to sustain the rally.
What Happened: Despite potential risks, UBS remains optimistic about the market’s future, as per a blog post by Jason Draho, the head of asset allocation Americas at UBS Global Wealth Management, on Monday, reported Business Insider.
“The relentless climb higher for risk assets may slow and could well have some slip-ups in the near term as the weather turns warmer, but we still expect the direction of travel for the rest of the year to be higher,” wrote Draho.
The first reason cited is the strong growth prospects for the U.S. economy, which have kept investors confident, despite mixed labor market and production data. The S&P 500 has mirrored the GDP growth consensus, currently at 2%, since October.
Secondly, the improved growth outlook has made equities less susceptible to inflation and tighter central bank policies. This is evident in the S&P 500’s record highs, despite the increasing expectation of higher interest ...