UBS Global CIO Tells Clients Not to Panic After Selloff

The video discusses market reactions to recent events, emphasizing the importance of not panicking. It highlights the stabilization of the Chinese currency and the potential for further actions from the US. The speaker advises on asset allocation, suggesting rebalancing portfolios to take advantage of Central bank support and emerging market opportunities. The video also addresses the challenge of negative yielding debt and suggests looking at investment grade credit in Europe and higher yielding emerging market currencies as potential sources of yield without excessive risk.

What was one of the main reasons for the market panic discussed in the video?

• Uncertainty about continuous escalation

• A new trade agreement

• A major earthquake in Asia

• A sudden drop in oil prices

What is a key consideration for asset allocation during market uncertainty?

• Ignoring central bank support

• Focusing solely on equity markets

• Rebalancing to add more yield

• Investing only in domestic markets

Which type of bonds are mentioned as an opportunity to add yield to a portfolio?

• High-yield bonds from tech companies

• Municipal bonds from local governments

• Dollar denominated sovereign bonds from emerging markets

• Corporate bonds from developed markets

In the context of negative yielding debt, which region's investment grade credit is considered attractive?

• North America

• South America

• Europe

• Asia

Which currencies are highlighted as higher yielding options in emerging markets?

• Japanese Yen and Swiss Franc

• Indonesian Rupiah and Indian Rupee

• Euro and British Pound

• Canadian Dollar and Mexican Peso