UBS Global Wealth Management CIO on the Global Markets

The video discusses the relationship between earnings growth and valuation pressures due to rising rates, emphasizing a 12-month positive outlook. It explores bond market repricing and central bank actions, highlighting potential policy mistakes. The impact of rate hikes on market volatility and sector performance is analyzed, with a focus on financials. Geographical preferences for Japanese and Eurozone equities are discussed, considering cyclical market opportunities. Finally, the video examines COVID-19's limited impact on markets, with inflation and supply chain disruptions being more significant concerns.

What is the primary factor that can offset downward pressure on market valuations due to rising rates?

• Increased consumer spending

• Earnings growth

• Decreasing inflation

• Lower unemployment rates

Which central bank is mentioned as having clearly communicated its tapering plans?

• Bank of England

• Federal Reserve

• Bank of Japan

• European Central Bank

How do rate hikes influence different sectors within the market?

• They have no effect on any sector

• They cause all sectors to perform equally

• They affect sectors differently based on timing

• They only impact technology sectors

Which regions are currently preferred for their cyclical markets?

• Australia and New Zealand

• US and Canada

• China and India

• Japan and Eurozone

What is currently not a major concern for markets according to the transcript?

• Supply chain disruptions

• Monetary policy

• Inflation

• COVID-19 case counts