It's going to remain tricky for investors to pick stocks for the rest of this year because markets are still hooked on unpredictable economic data, according to UBS.
The investment chief was referring to the benchmark US stock index's rebound this year from a plunge of 18% in 2022. The note comes ahead of the release later Wednesday of the monthly Consumer Price Index report, which will show how much US inflation rose in March. His bank believes the CPI will come in at 5.1% — down fromMarkets will stay unpredictable even if inflation cools for a ninth month in a row, according to Haefele, because investors are still struggling to make sense of the US labor market.showed the US economy added 236,000 jobs in March, its lowest print since December 2020.
Worries about an economic slowdown could soon replace inflation tracking as a key focus, UBS's investment chief added.will likely soon start weighing on growth – and that slowdown could drag on stocks by chipping away at listed companies' earnings.