UBS likes our stocks and bonds so Trump’s pro business policy floats on every boat
UBS’s asset management is bullish in the US equity and bond markets this year, saying President Donald Trump’s prosis and deregulation policies will boost corporate revenues and support the world’s largest economy.
“We expect that once Trump takes office, we will see an increase in noise and volatility with more range of results,” Nicole Goldberger, the company’s global portfolio manager, said in an interview in Hong Kong later last month. Ta. “But it’s important not to lose sight of the big picture. All of these powerful tails support our bullish attitude.”
The New York-based fund manager oversees UBS’s US growth and income strategy. This is a balanced fund with TOP Equity Holdings of US$320 million in December, including Apple, Nvidia, Microsoft, Amazon.com and Alphabet. They also held bonds sold, particularly by Uniti Group, Fortress Transport and Xerox.
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UBS has maintained an overweight position in the information technology and communications services sector, driven by strong revenues from “magnificent seven” stocks, including meta platforms and automaker Tesla. The tech giant has scored 51% in the last 12 months, with the S&P 500 index rising 22%.
Nicole Goldberger, Head of Global Portfolio Management at UBS Asset Management. Photo: Leopold Chen Alt = Nicole Goldberger, Head of Global Portfolio Management at UBS Asset Management. Photo: Leopold Chen>
“Looking back over the past two years, the majority of the returns are dominated by the ‘magnificent seven’,” she said.
Goldberger, who joined UBS in January 2020 after a 16-year career at JPMorgan Asset Management, hopes that the Federal Reserve will ease its policy with two interest cuts later this year. The Fed has been cut three times since September to the 4.25-4.5% range, but it throttled the easing last month to reassess inflation.
Investors said they have acquired the price of inflation risk in preparation for Trump’s January 20 inauguration, improving the risk compensation profile of bond investors. UBS is optimistic, “dislocations” are temporary and bets on rate cuts to boost bond prices.
Louis Won, director of Hong Kong’s Philip Capital Management, said the US stock market will continue to grow this year due to tax cuts, helping S&P 500 members grow 15%. However, this progress will be full of fluctuations as Trump’s agenda promotes volatility.