US Equity Size and Style

UBS maintains a neutral recommendation on US equity size and style segments, balancing strong AI-driven growth in large caps against attractive valuations in small caps. While the bull market remains intact, risks include rising corporate credit defaults, waning fiscal stimulus, and potential economic deceleration.

Key Takeaways

• 1.UBS maintains a Neutral stance across all US equity size (large vs. small cap) and style (growth vs. value) segments.
• 2.Small caps have benefited from improved earnings estimates and fiscal support, but balance sheet leverage remains a risk as defaults rise.
• 3.Large-cap growth is supported by strong AI demand and 'Magnificent 7' earnings power, which is expected to grow at a mid-teens annualized rate.

Table of Contents

• Size: Neutral across size segments
• Style: Neutral on growth and value
• Global Asset Class Preference Neutral
• Global asset class preferences definitions
• Appendix
• Risk information

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