UBS sees gold as a beautiful geopolitical hedge and portfolio diversifier, ranking the metallic as most most popular in its funding classes for the second half of the yr report. The financial institution highlights robust market efficiency pushed by AI funding and recommends diversified portfolios throughout varied property, areas, and sectors to navigate political and financial uncertainties.
UBS Highlights Key Funding Classes for H2 2024
UBS’ Wealth Administration revealed a report this week titled “Funding Classes for the Second Half.” The report, authored by the UBS Editorial Group with main contributions from chief funding officers Solita Marcelli and Mark Haefele, highlights a number of key classes for traders over the following six months.
The report emphasizes the significance of diversification throughout property, areas, and sectors, particularly given the political uncertainty highlighted by U.S. election debates. “In order traders head into the second half of the yr, we advocate getting ready for decrease charges and an evolving political panorama by constructing a balanced and diversified portfolio throughout mounted earnings, equities, and different investments,” UBS recommends, including:
We additionally see gold as a beautiful geopolitical hedge and portfolio diversifier, and fee the metallic as most most popular.
UBS additionally famous that the primary half of 2024 noticed robust market efficiency. “We proceed to see a supportive backdrop for international equities, and anticipate 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 predict traders ought to make certain 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.
