UBS said \u200con Friday it has cut its recommended allocation to U.S. equities to neutral, as the world\u2019s \u2060biggest \u200bstock market risks lagging behind while growth accelerates elsewhere.<\/p>\n
In a note, strategists Andrew Garthwaite and Marc el Koussa cited reasons such \u200bas the relatively lower \u200csensitivity of U.S. corporate earnings to global growth, high valuations, the trend of funds diversifying outside of the United States and downside risks to the \u200cdollar, \u200bamong other \u200cthings.<\/p>\n
\u201cThe U.S. has the lowest operational \u200bleverage of any major region and thus \u2060historically underperforms if global growth accelerates \u2060to be above 3.5 per cent,\u201d they said.<\/p>\n
UBS forecasts \u200bglobal GDP to come in at 3.4 per cent in 2026.<\/p>\n
U.S. investors have been pulling money from the world\u2019s largest stock market, as waning Big Tech returns and chaos \u2060over domestic policymaking leaves them searching for alternatives.<\/p>\n
Weakness in the dollar – which last year clocked its worst annual performance since 2017 – has been another push factor.<\/p>\n
\u201cFrom our \u2060marketing in North America, it \u200bseems unambiguous that funds will go global,\u201d said \u2060the strategists. \u201cETF flows show diversification is happening.\u201d<\/p>\n
Still the \u200cU.S. market is so large that even a \u200bbenchmark allocation would remain a hefty one, with U.S. stocks comprising more than 70 per cent of the MSCI World Index of \u200bglobal stocks.<\/p>\n","protected":false},"excerpt":{"rendered":"UBS said \u200con Friday it has cut its recommended allocation to U.S. equities to neutral, as the world\u2019s…\n","protected":false},"author":2,"featured_media":22261,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[1064,1051,1065,1042,1040,1066,563,1039,1057,1058,1054,1041,1038,39,1062,457,1056,1049,1077,1043,1044,70,1052,1053,899,1067,1047,1072,1073,1075,1070,1074,1068,1071,1045,1060,1061,69,1059,1069,1050,789,1063,1055,223,1048,1046,1076],"class_list":{"0":"post-22260","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-alberta","9":"tag-arts-news","10":"tag-bc","11":"tag-breaking-news","12":"tag-breaking-news-video","13":"tag-british-columbia","14":"tag-canada","15":"tag-canada-news","16":"tag-canada-sports","17":"tag-canada-sports-news","18":"tag-canada-trafficcanada-weather","19":"tag-canadian-breaking-news","20":"tag-canadian-news","21":"tag-economy","22":"tag-education","23":"tag-environment","24":"tag-federal-government","25":"tag-foreign-news","26":"tag-globe-and-mail","27":"tag-globe-and-mail-breaking-news","28":"tag-globe-and-mail-canada-news","29":"tag-government","30":"tag-life-news","31":"tag-lifestyle","32":"tag-local-news","33":"tag-manitoba","34":"tag-national-news","35":"tag-new-brunswick","36":"tag-newfoundland-and-labrador","37":"tag-northwest-territories","38":"tag-nova-scotia","39":"tag-nunavut","40":"tag-ontario","41":"tag-pei","42":"tag-photos","43":"tag-political-news","44":"tag-political-opinion","45":"tag-politics","46":"tag-politics-news","47":"tag-quebec","48":"tag-sports-news","49":"tag-technology","50":"tag-travel","51":"tag-trudeau","52":"tag-ubs","53":"tag-us-news","54":"tag-world-news","55":"tag-yukon"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/22260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=22260"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/22260\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/22261"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=22260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=22260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=22260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}