Maintain a Diversified Portfolio Amid Geopolitical Volatility

UBS advises investors to maintain diversified portfolios and stay positioned for long-term equity gains despite Middle East tensions and resurfacing US-EU trade frictions. Key recommendations include adding quality bonds, gold as a hedge, and using structured investments to manage near-term volatility.

Key Takeaways

• 1.Maintain diversified portfolios despite Middle East tensions that have interrupted optimism over reopening the Strait of Hormuz.
• 2.Add quality bonds for durable income, as central banks are expected to look through the oil price spike.
• 3.Utilize gold as a portfolio hedge, with a price target of USD 5,900/oz by year-end due to central bank and retail demand.

Table of Contents

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

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