We Are Risk-On for Markets in Short-Term, Says UBS’s Zuercher

The video discusses recent market trends, highlighting a shift towards increased risk in December due to supportive central bank policies. It emphasizes strategic asset allocation changes, particularly increasing equity allocation over the next 5 to 7 years due to low yields. The focus then shifts to emerging markets, noting their attractive valuation and strong earnings growth compared to the US and Europe. The video concludes with the impact of macro momentum and monetary policy on the US dollar and emerging market assets.

What has been a significant factor in the recent market support?

• Decreasing inflation rates

• Rising oil prices

• Central banks' supportive policies

• Increased consumer spending

Why is there a strategic shift towards increasing equity allocation?

• Rising interest rates

• High bond yields

• Low yields in other asset classes

• Decreasing stock market volatility

Over the next 5 to 7 years, which asset class is expected to provide the best returns?

• Real estate

• Equities

• Cryptocurrencies

• Commodities

Which region has been identified as having strong earnings growth?

• Europe

• North America

• Asia

• Australia

How does the valuation of emerging markets compare to the US?

• Less attractive

• More attractive

• More expensive

• Similar