Cyclical, Value Stocks May Gain as Virus Fears Wane: UBS

The video discusses the impact of geopolitical risks, such as US-China tensions, on market reactions. It highlights how equities are currently resilient despite these risks. The focus then shifts to the relationship between lockdowns and virus transmission, suggesting that mobility data shows little correlation with virus spread. The possibility of modified herd immunity is considered. Finally, the video explores the potential for further equity market gains due to central bank and fiscal stimulus, with a focus on cyclicals and value stocks.

What are some of the issues contributing to geopolitical risks between the US and China?

• Climate change and environmental policies

• Healthcare and education reforms

• Tech, trade, and financial regulation issues

• Space exploration and technology

What does the mobility data suggest about the relationship between lockdowns and virus transmission?

• There is little correlation between mobility and virus transmission reduction.

• Mobility data is irrelevant to virus transmission.

• There is a strong correlation between mobility and virus transmission reduction.

• Mobility data shows a direct cause of virus transmission.

What is the theory regarding modified herd immunity in some areas?

• It indicates that a significant percentage of the population has already been infected, reducing the risk of a second wave.

• It proposes that some areas may have a natural resistance to the virus.

• It suggests that a large portion of the population is immune due to vaccination.

• It claims that herd immunity is not achievable without a vaccine.

What factors could lead to higher multiples in equity markets?

• Central bank stimulus and fiscal stimulus

• Increased consumer spending

• Rising interest rates

• Decreased government intervention

Which sectors are expected to contribute to future gains in equity markets?

• Sectors that have already rallied significantly

• Cyclicals and value names that have not yet rallied

• Technology and healthcare sectors

• Real estate and utilities