Value Stocks Favored Over Growth, UBS Global WM Says

The video discusses the potential for a soft landing in the economy and the implications for asset allocation, favoring a defensive posture with healthcare stocks. It examines the performance of value versus growth stocks, noting recent growth stock rallies as temporary. The impact of geopolitical risks on investment strategies is highlighted, with a focus on private equity and debt as defensive options. Finally, the video evaluates tech stock valuations, considering the US market's current high trading levels and potential Federal Reserve actions.

Why are healthcare stocks considered a defensive investment in a rising rate environment?

• They have high leverage compared to other sectors.

• Their cash flows are less affected by rising rates.

• They are more volatile than other sectors.

• They have low dividend yields.

What is the expected trend for value stocks in the coming months?

• They are likely to be more vulnerable.

• They are expected to perform better than growth stocks.

• They are expected to underperform growth stocks.

• They will remain stable with no significant changes.

What is the anticipated impact of geopolitical risks on investment strategies?

• They lead to higher allocations in public markets.

• They have no impact on investment strategies.

• They decrease the need for alternative investments.

• They increase portfolio volatility, warranting a defensive stance.

How are tech stocks currently valued in the US market?

• They are undervalued compared to historical averages.

• They are trading at historical averages.

• They are overvalued compared to historical averages.

• They are valued the same as international markets.

What is the Federal Reserve's likely stance on interest rates in the near future?

• They intend to increase rates to control inflation.

• They will maintain current rates indefinitely.

• They have no plans to change the rates.

• They plan to decrease rates to stimulate growth.