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Switzerland faces challenges as families receive eviction notices amid rising real estate speculation, raising concerns about social stability. While the economy shows some resilience compared to the EU, major Swiss companies like Roche and Nestlé struggle with poor management decisions, impacting investor confidence. The promise of a prosperous decade seems overshadowed by the realities faced by many employees and smaller investors.
UBS GWM's chief investment officer, Mark Haefele, anticipates a rally in U.S. equities and gold in 2025, driven by lower interest rates and economic growth, despite political uncertainties in Europe. He advises investors to employ liquidity wisely, strengthen core portfolios, diversify with alternative strategies, optimize leverage, maintain an active investment approach, and focus on sustainability to navigate the complex market landscape.
UBS strategists predict a continued rally in gold prices, projecting them to reach $2,900/oz by the end of 2025. Key drivers include central banks' ongoing gold accumulation, rising investor demand for safe-haven assets amid geopolitical uncertainties, and anticipated lower interest rates. They recommend a 5% allocation to gold in USD-based balanced portfolios as a diversifier.
UBS strategists anticipate a continued rally in gold prices, projecting them to reach $2,900/oz by the end of 2025. Key drivers include central banks' ongoing gold accumulation, rising investor demand for safe-haven assets amid geopolitical uncertainties, and expected lower interest rates. They recommend a 5% allocation to gold in USD-based balanced portfolios as a diversifier.
UBS predicts that AI will evolve into a trillion-dollar industry by the decade's end, driven by significant investments from major tech firms. The bank advises investors to diversify their portfolios by adjusting AI allocations, investing in supporting infrastructure, and balancing large companies with emerging players, while being cautious of risks in private markets. Key sectors poised for growth include healthcare, cybersecurity, and fintech, alongside rising energy demands due to AI's intensive nature.
In 2025, market growth is anticipated, particularly in U.S. equities, driven by lower interest rates and advances in artificial intelligence, with the S&P 500 projected to reach 6,600 points. However, risks such as tariffs and potential stagflation loom, necessitating careful monitoring of central bank policies. Italy's GDP is expected to slow, contrasting with stronger growth forecasts for Spain and India.
UBS Global Wealth Management's Mark Haefele noted that President-elect Trump's proposed tariffs on Mexico, Canada, and China have led to currency declines and market volatility. While the tariffs aim to leverage negotiations on migration and drug trafficking, Haefele maintains a positive outlook on US equities, citing strong growth prospects despite potential trade risks. He recommends a defensive stance on China stocks and suggests diversifying portfolios with gold and alternative assets.
Mark Haefele, chief investment officer at UBS, addressed the political turmoil in France and its implications for European markets during an appearance on Bloomberg Television. He noted that the stock market does not seem to be factoring in this uncertainty at all.
UBS forecasts the S&P 500 will reach 6,600 by the end of 2025, driven by an "over-easy" global central bank policy despite strong economic growth and high inflation. Chief investment officer Mark Haefele anticipates further interest rate cuts, supporting sustained economic growth in the U.S. while potential tariff threats loom over Asia and Europe.
UBS Global Wealth Management's Mark Haefele discusses the potential impact of President-elect Trump's proposed tariffs on Mexico, Canada, and China, which could lead to market volatility. The Canadian dollar and Mexican peso have weakened, while the Chinese renminbi fell to 7.26 against the US dollar. Haefele notes that the tariffs, aimed at addressing illegal migration and drug trafficking, may initiate negotiations despite the USMCA not being up for review until 2026. He maintains a positive outlook on US equities, particularly in technology, utilities, and financial sectors, while advising caution in China stocks and suggesting portfolio diversification.
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