Top Ten Questions Answered

UBS outlines a strategy for navigating 2026 market volatility caused by the US-Iran conflict, advising investors to lock in quality bond yields and diversify equity holdings beyond megacap tech.

Key Takeaways

• 1.Geopolitical risk from the Iran conflict persists; investors should use equity strength to rebalance and diversify portfolios.
• 2.The Fed is likely to hold rates steady, making this an opportune time to 'lock in' high yields in quality, intermediate-maturity bonds.
• 3.UBS maintains a positive medium-term outlook for equities (S&P 500 target 7,900) but recommends broadening exposure beyond US megacap tech.

Table of Contents

• What does the Iran conflict mean for markets?
• What does Fed policy mean for investors?
• How can income investors tackle higher inflation?
• Will higher yields derail bond investing?
• How can investors diversify their equity holdings?
• Can gold reach new highs?
• How to diversify with alternatives?
• How will the Iran conflict impact commodities?
• How can I invest in transformational innovation?
• Should investors worry about private credit?
• Appendix
• Disclaimer