UBS CIO sees further stock gains despite Federal Reserve rate hike

  • The Federal Reserve’s rate hike triggered a stock-market selloff.
  • Mark Haefele said UBS remains positioned for gains while preparing for near-term volatility.
  • Haefele urged diversified equity exposure and less concentration in rate-sensitive areas.

A Federal Reserve rate hike triggered a stock-market selloff, but the prospect of tighter monetary policy has not deterred market bulls. UBS Global Wealth Management chief investment officer Mark Haefele said his team remains positioned for further gains while preparing for near-term volatility. He said a rally could spread to more sectors and regions if tightening remains moderate, credit spreads (differences in yields between debt instruments) stay stable and profits continue growing. Haefele recommended diversified equity exposure and avoiding excessive concentration in areas especially sensitive to interest rates or dependent on a single return driver.

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