Bonds offer a better risk-reward than stocks – UBS
|Economists at UBS move bonds to most preferred relative to equities.
Global stocks to deliver limited returns
“Given the headwinds to growth, we now see a higher probability that central bank hiking cycles will end sooner. We, therefore, think it’s time to increase exposure to bonds, which we upgraded this month to most preferred.”
“While equities should remain a key component of long-term portfolios, we expect global stocks to deliver limited returns and exhibit high volatility over the remainder of the year. In this light, we downgraded equities this month to least preferred.”
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