UBS sees gold as a gorgeous geopolitical hedge and portfolio diversifier, score the steel as most most popular in its funding classes for the second half of the 12 months report. The financial institution highlights sturdy market efficiency pushed by AI funding and recommends diversified portfolios throughout varied belongings, areas, and sectors to navigate political and financial uncertainties.
UBS Highlights Key Funding Classes for H2 2024
UBS’ Wealth Administration printed a report this week titled “Funding Classes for the Second Half.” The report, authored by the UBS Editorial Staff with main contributions from chief funding officers Solita Marcelli and Mark Haefele, highlights a number of key classes for traders over the subsequent six months.
The report emphasizes the significance of diversification throughout belongings, areas, and sectors, particularly given the political uncertainty highlighted by U.S. election debates. “In order traders head into the second half of the 12 months, we advocate getting ready for decrease charges and an evolving political panorama by constructing a balanced and diversified portfolio throughout mounted earnings, equities, and various investments,” UBS recommends, including:
We additionally see gold as a gorgeous geopolitical hedge and portfolio diversifier, and price the steel as most most popular.
UBS additionally famous that the primary half of 2024 noticed sturdy market efficiency. “We proceed to see a supportive backdrop for world equities, and count on low cost elements to say no as inflation normalizes and central banks embark on an easing cycle,” the report particulars.
Secondly, Synthetic Intelligence (AI) “remained a dominant driver of enterprise funding and market efficiency,” UBS stated. AI investments, notably NVIDIA’s 150% year-to-date surge, underscored the sector’s important market affect. “We expect traders ought to be certain that they’re sufficiently invested in AI, with a tactical tilt to the enabling layer of the know-how’s worth chain and megacaps,” stated UBS.