The Case for Buying Into All-Time Equity Highs

UBS maintains a constructive view on global equities, arguing that record highs are supported by accelerating AI spending and resilient corporate earnings. Despite geopolitical flares in the Middle East and political shifts in the UK, the house view favors staying invested in tech, US equities, and quality bonds.

Key Takeaways

• 1.AI spending remains a key pillar of growth, with major spenders lifting combined capex guidance to USD 725bn this year.
• 2.Historical data suggests that hitting record highs does not typically result in weaker forward returns for the S&P 500.
• 3.Geopolitical risks in the Middle East are being priced as potentially improving, allowing markets to refocus on fundamentals like earnings and the Fed.

Table of Contents

• From the studio
• Thought of the day
• What to watch: 8 May
• Caught our attention
• Market update
• Global asset class preferences definitions
• Appendix

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial