UBS' Haefele on Equities, Trade, Fed

The video discusses the current state of equity markets, advising against closing long positions due to strong economic and corporate earnings growth. It examines US-China trade tensions, suggesting a trade war is unlikely. The Federal Reserve's focus on US economic strength is highlighted, with interest rate hikes not yet stifling growth. The ECB and Bank of Japan's roles in global liquidity are also considered.

What factors contributed to the resilience of equities in the first half of the year despite volatility?

• Strong global economic growth and corporate earnings

• Decrease in geopolitical tensions

• Reduction in interest rates

• Increase in consumer spending

What is the UBS house view on the potential trade war between China and the United States?

• Trade tensions will not affect global trade

• A trade war will be averted

• A trade war is inevitable

• The US will benefit from a trade war

How has the Fed's focus on the US economy affected global markets?

• It has weakened the US dollar

• It has led to a global recession

• It has contributed to near-term weakness in emerging markets

• It has strengthened global markets

What is the Fed's current approach to managing interest rates compared to previous cycles?

• To maintain high inflation

• To intentionally choke off growth

• To decrease interest rates rapidly

• To normalize interest rates without stifling growth

Which central bank is still providing liquidity to the global system?

• Bank of Japan

• Bank of England

• European Central Bank

• Federal Reserve