House View Daily US

UBS recommends investors focus on selectivity and long-term transformational themes like AI and electrification amidst a cooling US labor market and low stock correlations.

Key Takeaways

• 1.Selectivity is critical in the current equity market as individual stock correlations have dropped to their lowest levels since 2018.
• 2.The report identifies three 'transformational' themes for long-term growth: Artificial Intelligence, Electrification (Power and Resources), and Longevity.
• 3.Despite a headline beat in US jobs data, the underlying labor market is showing signs of cooling, which supports the case for Fed rate cuts later in 2026.

Table of Contents

• From the studio
• Thought of the day
• What to watch: 12 May
• Lower stock correlation underscores the importance of selectivity.
• Innovation is likely to remain key in long-term growth.
• Caught our attention
• Market update
• Global asset class preferences definitions
• Appendix

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