UBS Has Cut Its Overweight in EM Equities: Themistocleous

The video discusses UBS's strategic changes in response to the trade war, including reducing exposure to emerging market equities and the Australian dollar. It highlights investment in high-yield emerging market currencies like the South African Rand, Indian Rupee, and Indonesian Rupiah. The discussion shifts to the dollar's potential movement amid low volatility and yield curve flattening, with historical comparisons to past market reactions, emphasizing the dollar's role during financial crises.

What strategy did UBS adopt in response to the trade war's impact on emerging markets?

• Increased investment in Australian equities

• Reduced exposure to emerging market equities

• Invested heavily in European bonds

• Focused on US technology stocks

Which currency did UBS choose to go long on due to its high yield?

• Australian Dollar

• Swiss Franc

• Japanese Yen

• South African Rand

What has been a significant factor in the low volatility environment of the past six months?

• Rising oil prices

• Flattening yield curves

• Increased geopolitical stability

• High inflation rates

How does the current market reaction to trade tensions compare to past events?

• Similar to the financial crisis of 2008

• Unlike any previous market reaction

• Similar to the dot-com bubble burst

• Identical to the 2015 market correction

What is the speaker's view on the valuation of the US dollar?

• The dollar is fairly valued

• The dollar's value is irrelevant

• The dollar is undervalued

• The dollar is overvalued