Equities Bull Market Is Very Much Intact, Says UBS’s Bevis

The video discusses a bullish outlook on equity markets, emphasizing a preference for risk-on strategies due to favorable economic conditions like GDP recovery and low interest rates. It highlights small and midcap equities in the US and emerging markets, particularly China and Latin America, as preferred investment areas. The discussion includes the impact of economic recovery, fiscal policies, and market liquidity on these markets.

What are the key factors supporting the current bullish stance on equity markets?

• High interest rates and market volatility

• GDP recovery and falling unemployment rates

• Decreasing fiscal stimulus and high inflation

• Rising unemployment and economic contraction

Why are US small and midcap equities preferred in the current market?

• They are less affected by economic changes

• They benefit from the economy reopening

• They have higher valuations than large caps

• They are more stable than emerging markets

What is a significant factor contributing to the preference for emerging market equities?

• Strong earnings momentum and global liquidity

• High US dollar value

• Decreasing commodity prices

• Increased US policy uncertainty

Which region is highlighted as a preferred market within Asia?

• India

• China

• South Korea

• Japan

What recent change has reduced US policy uncertainty?

• New trade agreements

• The new Biden administration

• Increased tariffs

• Higher interest rates