UBS recommends three areas for investors as markets reassess the Federal Reserve’s September decision: equities, the medium-to-long part of the yield curve, and gold. The bank continues to favor artificial intelligence, power, resources and longevity within its equity positioning. It says recent increases in yields have improved entry points for longer-term bonds, offering income and diversification, while gold remains a portfolio hedge and diversifier rather than a tactical bet on the next Fed move. UBS is no longer recommending that investors lock in yields in short- to medium-duration bonds as an alternative to cash. Market expectations have shifted sharply after Federal Reserve Chair Kevin Warsh warned about inflation in a Jackson Hole speech and August data showed nonfarm payrolls rising by 162,000, above the 55,000 consensus forecast, with unemployment steady at 4.1%. CME FedWatch put the probability of a September rate hike at 60.4% on Tuesday, rising to 70.9% by October and 85.8% by December. The Federal Open Market Committee (FOMC), the Fed’s policy-setting body, meets September 15 and 16. UBS strategists led by Mark Haefele say the market impact depends more on whether policy responds to strong growth or persistent inflation. Core CPI data due September 11 will test whether the recent hawkish repricing holds.