UBS On-Air: Market Moves

Following CIO’s recent upgrade of the Preferred Securities sector to Attractive, Frank Sileo, Senior Fixed Income Strategist Americas from the UBS Chief Investment Office, joins to explain the positioning rationale against the current rate environment. Host: Daniel Cassidy

Markets have reassessed what the shifting US political landscape means for the shiny new toy of artificial intelligence. This does not mean much economically—households are not likely to change consumption patterns because the Nasdaq had a bad day. Data-center builders might have to offer more “inducements” to local communities, raising project costs. Such “inducements” are economically positive—building a school generates economic activity.

In the wake of this week’s US midterm election outcome, Paul Hsiao, Senior Asset Allocation Strategist Americas from the UBS Chief Investment Office, joins for timely reflections on this week’s notable market swings, and guidance on how to position your portfolio. We also cover the implications of the election outcome to the landscapes for financing and deal-making, along with the progression of AI-buildout. Host: Daniel Cassidy

On this week’s episode, Burkhard shares his thoughts on how and to what extent an array of factors - the US midterm elections, the recent global technology sector correction, bond markets, ongoing geopolitical developments, and a recent crypto heist - are weighing on minds of investors. Burkhard then goes on to reinforce why in today’s environment, it’s important to stick to your strategy, stay diversified, and not let the news make your decisions for you.

Markets responded positively to the US midterm election results. Expectations of policy gridlock do not solve the unsustainable US fiscal position but reduce politicians’ ability to inflict further fiscal damage. US Vice President Vance blamed Republican losses on the Gulf war. That, amplified by the optimism bias, shifted expectations of a US retreat and allowed oil prices to fall.