Risk Asset Investment Makes Sense Over Medium-Term: UBS’s Haefele

The video discusses concerns about central bank policies leading to asset bubbles due to excess liquidity. It examines whether these bubbles pose systemic risks and the role of central banks in managing inflation. The potential catalysts for market corrections, such as COVID recovery and supply imbalances, are explored. The video concludes with investment strategies during volatile times, emphasizing the importance of staying invested in risk assets amid fiscal and monetary stimulus.

What is the main concern regarding the current market liquidity?

• It is increasing unemployment rates.

• It is reducing housing prices.

• It is leading to asset bubbles.

• It is causing systemic inflation.

What is one reason why a systemic bubble is not expected currently?

• Liquidity is being pulled out of the system.

• Central banks are increasing interest rates.

• Housing prices are decreasing.

• Central banks are maintaining liquidity.

What could be a catalyst for a market correction according to the discussion?

• A hiccup in the COVID-19 recovery.

• An increase in unemployment rates.

• A decrease in stock market investments.

• A sudden increase in housing prices.

What is a potential risk if investors lose faith in central banks?

• An increase in unemployment rates.

• A sudden drop in housing prices.

• A shock due to rising interest rates.

• A decrease in fiscal stimulus.

What is suggested as a beneficial strategy in the medium term despite market volatility?

• Avoiding all market investments.

• Focusing solely on real estate.

• Staying invested in risk assets.

• Investing in low-risk assets.