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Prepare for Significant Market Swings Amid U.S. Election, UBS Advises

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By Minipip
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Investors should brace for substantial market fluctuations in the coming days as Americans cast their votes in the U.S. presidential election, according to UBS analysts.

Both Donald Trump and Kamala Harris made a final push across key battleground states to rally last-minute support. In Pennsylvania, Harris described America as "ready for a fresh start," while Trump, in Michigan, urged his supporters to turn out in large numbers, underscoring the high stakes of this election.

With the race remaining tight—especially in critical swing states—the election results are likely to impact various sectors, including oil and gas, Big Tech, electric vehicles, and financial services. Traders are closely watching these returns, as the winning candidate’s policies could drive significant market shifts.

UBS analysts, led by Mark Haefele, advised investors to prepare for potential market volatility, suggesting that any large moves could present opportunities to strengthen long-term portfolios. They noted that U.S. equities remain attractive, supported by "benign growth, lower rates, and structural AI-driven support," regardless of the election outcome. UBS suggested that any short-term market dips could offer a strategic moment for investors to increase their stakes in the technology, utilities, and financial sectors.

While volatility this week appears inevitable, UBS analysts don't expect the election to dramatically shift their 12-month outlook on U.S. equities. They project the S&P 500 will rise to 6,600 by the end of next year, representing an approximate 15% gain from current levels.

Key Takeaways for Investors:

  • Prepare for market volatility driven by the election outcome.
  • U.S. equities remain attractive with structural growth drivers.
  • Watch for opportunities to invest in technology, utilities, and finance sectors amid any short-term dips.
(Sources: investing.com, reuters.com)

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