Stocks might not get trampled by central bank 'elephants.' We were wrong, says UBS CIO

Stocks aren’t looking as shabby as UBS’s chief investment officer for wealth management once thought.

“In retrospect, the elephants did dance, and some victims were crushed,” Mark Haefele, chief investment officer of UBS Global Wealth Management, wrote in new client note. “It has also been a weak summer for major stock indexes. Yet overall, we overestimated the risks of central bank rate hikes for the global economy and were too pessimistic on stocks.”

August has been rough for equities. U.S. stocks were on pace for weekly losses of more than 2.2% on Friday, but the S&P 500 was off about 4.9% for the month to date, trading below 4,370, at last check, according to FactSet. The Nasdaq Composite Index COMP was down 7.4% in August and the Dow Jones Industrial Average DJIA was 3.1% lower.

Haefele said a forecast for a shakier economic backdrop led UBS to take advantage of higher yields and “collect income from bonds,” earlier this year, but he now sees room for a “higher profile” of stocks in portfolios over the next six to 12 months, particularly with a “softish” landing for the economy looking possible, given inflation receding and the expanding U.S. economy, despite the Federal Reserve’s fast-tracking its policy rate to a 22-year high.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves after hours: Cisco Systems, Synopsys, Wolfspeed and moreThese are the stocks posting the largest moves in postmarket trading.
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »

Stock market today: Dow closes lower as spike in Treasury yields rattles stocks By Investing.comStock market today: Dow closes lower as spike in Treasury yields rattles stocks
Source: Investingcom - 🏆 450. / 53 Read more »

Asian stocks sink as Fed fears batter tech, China concerns grow By Investing.comAsian stocks sink as Fed fears batter tech, China concerns grow
Source: Investingcom - 🏆 450. / 53 Read more »

Hedge funds bought these Chinese technology stocks in the second quarterBig investors took a selective approach to China-based technology stocks in the second quarter, recent regulatory filings suggest.
Source: CNBC - 🏆 12. / 72 Read more »