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UBS shares 3 ways investors can take advantage of market swings following the late-February selloff - and lays out 3 sectors that can benefit from higher growth and interest rates

UBS shares 3 ways investors can take advantage of market swings following the late-February selloff - and lays out 3 sectors that can benefit from higher growth and interest rates

Traders work during the opening bell at the New York Stock Exchange (NYSE) on March 13, 2020 at Wall Street in New York City.
Johannes Eisele/AFP/Getty Images




Last week's sell-off left investors worried about their riskier assets and rising rates.




But the setback was a volatility spike, not a fundamental shift in the market outlook, says UBS.




UBS shares how to play volatility spikes, and sectors that do well from higher growth and rates.




Visit the Business section of Insider for more stories.


Some investors were quick to sell some of their equity holdings last week after the quick rise of the 10-year yield rattled Wall Street. However, they might have missed out on an opportunity to put their cash to work and build more exposure. Strategists at UBS' Chief Investment Office led by Mark Haefele wrote in a Tuesday article that the sell-off last week was just a volatility spike, and not a fundamental shift in the market outlook, which in their case, remains positive on equities. Although the stock market came under extreme pressure as February came to an end, positive news on fiscal stimulus, progress in the battle against COVID-19, strong economic data, and easing yields provided a steady ground for stocks to bounce back on Monday. "Notable changes in key variables - the COVID-19 pandemic, fiscal stimulus, and inflation - can be expected to lead to periodic spikes in market volatility," they wrote.
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