UBS Wealth Management: Underweight Equities

The video discusses the ongoing trade tensions and their impact on economic data, particularly in manufacturing. It highlights the potential risks of new tariffs affecting the consumer economy and suggests investment strategies like carry strategies and higher quality credits. The discussion also covers the challenges of managing risks in a volatile trade policy environment and the importance of balancing downside protection with upside potential.

What is one of the main economic indicators showing the impact of trade tensions?

• Manufacturing data

• Retail sales data

• Housing market data

• Unemployment rate

What investment strategy is suggested as having a better risk-reward in the near term?

• Overweight in equities

• Investing in technology stocks

• Investing in real estate

• Carry strategies and earning a coupon

Which type of bonds are recommended for US investors seeking higher quality credits?

• Municipal bonds

• U.S. dollar-denominated emerging market sovereign bonds

• Corporate junk bonds

• Treasury bonds

What is a challenge mentioned in the context of trade policy changes?

• Switching strategies quickly

• Understanding consumer behavior

• Predicting interest rate changes

• Forecasting inflation rates

What is a potential market condition when the stock market is performing well?

• Higher inflation

• Decreased interest rates

• Increased trade tensions

• Stable currency exchange rates