UBS analysts emphasise that market uncertainty is unlikely to undermine favourable equities fundamentals and advise investors to stick with the plan as the U.S. presidential election approaches.

UBS advises against making significant portfolio adjustments depending on election results, even if there may be further volatility in the weeks ahead.

They clarify that historical evidence backs up this assertion, noting that U.S. stocks have shown advances since 1928 and often do well before and after presidential elections.

With a recent closing of 5,854 and approaching its 47th all-time high of the year, the S&P 500 has shown great momentum.

With firms accounting for 15% of the market capitalisation of the S&P 500 reporting Q3 earnings thus far, 80% of which exceeded profits predictions and more than 60% exceeding sales expectations, UBS said the market's six-week winning run represented strong economic development.

Analysts at UBS are nevertheless upbeat about the state of the economy overall, citing robust consumer spending, bank confidence, and ongoing demand for AI technology.

UBS predicts that S&P 500 earnings will climb by 11% in 2024 and 8% in 2025 as a result of the Federal Reserve's anticipated further interest rate reductions.

UBS emphasises the significance of assessing policy changes in context, even though they may have an impact on market behaviour after the election.

In the end, UBS advises investors to hold onto their holdings and concentrate on long-term fundamentals rather than political results because it views election uncertainty as a natural aspect of the market.

(Sources: investing.com, reuters.com)