UBS forecasts continued resilience in the global economy and maintains an overweight position in global equities for Q3 2026. Despite sticky inflation and the potential for Fed rate hikes, broad-based earnings growth, particularly in AI-related sectors, is expected to support ongoing market gains.
Key Takeaways
- 1.Global economy shows resilience supported by US labor market and manufacturing activity.
- 2.US core inflation remains sticky, keeping Fed rate hikes on the table despite falling oil prices.
- 3.AI hardware spending fuels earnings growth, but diversification is recommended due to crowding.
Table of Contents
- The bull market can survive higher rates
- Resilient growth, sticky inflation
- Markets can withstand Fed hikes
- Asset allocation
- Asset class views
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Authors
Evan Brown
Securities
S&P 500MSCI EM
Themes
AI Capital Expenditure BoomMonetary Policy NormalizationSticky Inflation
Regions
GlobalAsia PacificEuropeUnited StatesJapanSwitzerland