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UBS analysts have declared an overweight position on the United Kingdom in their Outlook 2025 report, citing five key reasons. Notably, the UK tends to excel when defensive sectors are performing well, indicating a positive outlook for investors.
UBS advises investors to underweight stocks with significant exposure to China, citing concerns over weaker growth projections of 3.7% in 2025 and 2.7% in 2026. Chief global equity strategist Andrew Garthwaite highlights three main threats to these equities in his Outlook 2025 report.
UBS advises investors to underweight stocks with significant exposure to China, citing concerns over weaker growth projections of 3.7% in 2025 and 2.7% in 2026. Chief global equity strategist Andrew Garthwaite highlights three main threats to these equities in his Outlook 2025 report.
UBS strategists, led by Andrew Garthwaite, predict a potential S&P 500 surge amid bubble conditions, noting that while the index has risen 23% this year, it hasn't yet entered a bubble due to restrictive monetary policy. They identify six of seven necessary bubble conditions, with the missing element being a looser monetary stance, suggesting a federal funds rate around 3.2% is needed. UBS estimates a 35% chance of a bubble by 2025, with the S&P 500 possibly surging by at least 20%, recommending investments in reasonably priced AI and electrification stocks like TSMC and Meta to hedge against risks.
UBS strategists, led by Andrew Garthwaite, predict a potential S&P 500 surge amid bubble conditions, noting that while the index has risen 23% this year, a loose monetary policy is still absent. They identify six of seven bubble conditions met, with a federal funds rate of around 3.2% needed to trigger a shift of funds into stocks. UBS estimates a 35% chance of a bubble by 2025, suggesting a possible 20% increase in the S&P 500, and recommends investing in reasonably priced AI and electrification stocks like TSMC and Meta to hedge against risks.
UBS analysts warn that a looser monetary policy from the Federal Reserve could trigger a stock market bubble, with six of the seven necessary conditions already in place. They predict a 35% chance of a bubble forming by 2025, contingent on further interest rate cuts. To hedge against this risk, UBS recommends investing in reasonably priced stocks in Gen AI and electrification, including TSMC, Meta, National Grid, PG&E, and Vistra.
UBS's global equity strategy team recommends investors shift from cyclical stocks to growth-oriented defensive stocks, citing high valuations and concerns over profitability amid a predicted global economic slowdown from 2024 to 2026. Defensive sectors like pharmaceuticals, software, and utilities are expected to thrive, with companies such as Microsoft and SAP highlighted for their strong growth potential and resilience during downturns.
UBS analysts recommend a defensive investment strategy, advising investors to underweight cyclical stocks in favor of growth defensives. Chief global equity strategist Andrew Garthwaite notes that cyclicals are currently priced for high PMIs, with P/E and P/B ratios near historical highs compared to defensives.
UBS analyst Steven Fisher identifies opportunities in the construction sector, particularly highlighting Vulcan Materials, the largest producer of aggregate materials in the U.S. Despite recent revenue misses, Fisher anticipates growth driven by an improving non-residential construction market and operational efficiencies, projecting a 3-4% volume growth in aggregates by 2026.
UBS analysts highlight opportunities in the construction sector, particularly for Martin Marietta Materials (MLM) and Vulcan Materials (VMC), both rated as Strong Buy. Despite recent earnings misses, analysts foresee growth driven by a supportive construction market, with MLM expected to see an 18% upside and VMC a 19.5% increase in share price over the next year.
Andrew Garthwaite
People
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
UBS cites five reasons for UK market optimism in Outlook 2025
19:30 20.12.2024
ubs advises caution on stocks with high china exposure due to growth concerns
19:08 20.12.2024
ubs advises caution on stocks with high china exposure due to growth concerns
19:08 20.12.2024
ubs forecasts s and p 500 surge amid bubble conditions
Vistra Corp.
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02:43 20.12.2024
ubs forecasts s and p 500 surge amid bubble conditions
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02:43 20.12.2024
ubs warns of potential stock market bubble amid loose monetary policy concerns
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21:31 19.12.2024
ubs advises investors to focus on growth oriented defensive stocks
07:35 19.12.2024
ubs advises caution on cyclicals favoring growth defensives
21:02 18.12.2024
ubs identifies growth potential in two construction stocks amid economic shifts
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11:54 12.11.2024
construction stocks poised for growth amid economic shifts and strategic opportunities
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11:57 11.11.2024
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