Stocks' bull run from the first half won't last - high interest rates and slumping growth will kill the rally, UBS says
Don't count on stocks' strong first-half run to last much longer – with high interest rates and slumping growth set to kill the rally, according to UBS.
The Swiss bank said Tuesday that equities' current gains will prove unsustainable, with either the threat of further Federal Reserve tightening or weak economic data likely to ruin current market optimism. "Investors should position for more lackluster stock market performance through the remainder of the year," a team led by UBS CIO Mark Haefele said in a note to clients.
"Fears of higher rates, a few disappointing economic numbers, or a shift in equity market sentiment could quickly unravel optimism about US growth resilience and its underpinnings," they added. Stocks rallied during the first six months of 2023, powered higher by a huge wave of interest in AI, with the benchmark
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