UBS maintains an attractive view on global equities, raising 2026 EPS growth forecasts to 20% as markets look past Middle East conflicts. Growth is driven primarily by technology and AI capex, though selectivity is advised.
Key Takeaways
- 1.Global equities have reached new all-time highs despite geopolitical tensions in the Middle East, supported by strong fundamentals.
- 2.UBS has significantly raised its 2026 earnings growth forecast for the MSCI AC World Index from 12% to 20%.
- 3.The AI sector remains a key driver, with expected AI capex growth of 70% this year, though a more selective approach is recommended.
Table of Contents
- Equities
- CIO View: Global equities
- Global Asset Class Preference Attractive
- Upside scenario
- Downside scenario
- Global asset class preferences definitions
- Appendix
- Risk information
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Authors
Fabian DeriazUlrike Hoffmann-Burchardi
Securities
MXWD
Themes
AI Capex and MonetizationGeopolitical Disruption (Energy Markets)Market Concentration Risk
Regions
GlobalEuropeAsia PacificUnited StatesJapanSwitzerland