Maintain a Diversified Portfolio Amid Geopolitical Volatility

UBS advises investors to maintain diversified exposure despite renewed Middle East tensions and UK political shifts. They highlight quality bonds and gold as key defensive tools while staying positioned for long-term equity growth.

Key Takeaways

• 1.Maintain portfolio diversification to navigate heightened geopolitical risks in the Middle East without attempting to trade short-term events.
• 2.Quality bonds in the short- to medium-maturity range offer appealing income as yields are expected to fall when markets adjust rate expectations.
• 3.Gold remains a strong portfolio hedge with a year-end target of USD 5,900/oz driven by central bank purchases and fiscal deficit concerns.

Table of Contents

• From the studio
• Thought of the day
• What to watch: 11 May
• Caught our attention
• Market update
• Appendix
• Global asset class preferences definitions
• Risk information
• Generic investment research – Risk information

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