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UBS, a global investment bank, believes U.S. equities will remain on solid ground despite recent volatility, particularly in the technology sector. Here's a bre

UBS: Equities to Stay Supported Despite Tech-Led Volatility

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UBS, a global investment bank, believes U.S. equities will remain on solid ground despite recent volatility, particularly in the technology sector. Here's a breakdown of their outlook:

  • Market Jitters: The U.S. stock market has experienced recent fluctuations, with the tech sector leading the decline.
  • UBS Stays Positive: Despite the volatility, UBS maintains a positive outlook for the overall stock market.
  • Tech Fundamentals Remain Strong: They point to strong artificial intelligence (AI) investment and spending by major tech firms like Meta, Alphabet, and Microsoft as a key driver of future growth.
  • Earnings Optimism: UBS forecasts an 11% earnings growth for the S&P 500 in 2024, supported by a broad economic rally.

UBS' Recommendations:

  • Strategic Exposure: While acknowledging short-term tech volatility, UBS recommends maintaining strategic exposure to the technology sector due to its long-term growth potential.
  • Right-Sizing Tech: They suggest adjusting tech holdings to navigate current volatility while maintaining a focus on companies positioned for future growth.
  • Alternative Strategies: For a more defensive approach, UBS suggests structured investments with capital preservation features or exploring opportunities in under-valued markets like South Korea.

Overall, UBS believes the current tech-driven volatility is temporary and that strong fundamentals will continue to support the overall U.S. equity market.

Investor Takeaway:

  • UBS' analysis suggests investors should consider a balanced approach, acknowledging near-term tech volatility while maintaining a long-term perspective on the sector's potential.

Remember: This is just one analyst's view. Conduct your own research and consider your risk tolerance before making investment decisions.

Quantify Market Volatility with FMP's Standard Deviation API!

The FMP Standard Deviation API can be a valuable tool to assess market volatility, including the tech sector. This data can help you make informed investment decisions.

Learn more: link to FMP Standard Deviation API documentation.

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