S&P 500 could rise to 4,400 by year-end in a soft landing scenario – UBS
|Caution in US equity positioning is warranted, economists at UBS report.
Equity backdrop remains challenging
“We see the risk-reward tradeoff for US equities as unattractive.”
“In a soft landing scenario, we think the S&P 500 could rise to 4,400 by year-end (7% upside), but if the economy slips into a recession, we believe the market could fall to 3,300 (20% downside).”
“Given this asymmetric skew, we have a least preferred rating on equities relative to bonds, especially in an environment where high-quality fixed income offers competitive returns.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.