UBS has preference for high-quality dividend stocks in Switzerland

Despite ongoing political uncertainty and trade disputes, UBS maintains a positive outlook on the fundamental economic environment. This optimism is underpinned by robust economic growth in the United States and a series of gradual rate cuts by the US Federal Reserve.

UBS suggests that investors should capitalize on opportunities across various markets. Specifically, the firm sees potential in US equities, small- and mid-cap European stocks, and select emerging markets.

With an expectation for the S&P 500 to reach 6,600 by December 2025, UBS also identifies promising prospects in Asia excluding Japan, highlighting Taiwan and India as regions of interest. Additionally, the firm recommends eurozone small- and mid-cap stocks, the health care sector, and high-quality dividend stocks, particularly in Switzerland.

The investment bank also addresses the growing significance of artificial intelligence (AI). UBS advises investors who are currently underinvested in AI to consider using periods of market volatility as opportunities to increase their exposure to this sector. To navigate through market fluctuations, UBS suggests that structured strategies with capital protection features could be beneficial for investors looking to remain in the market while managing volatility.

UBS's guidance reflects a strategy that balances seizing growth opportunities with the implementation of risk management techniques to safeguard investments during uncertain market conditions. The firm's positive outlook on global earnings and the S&P 500's future performance indicates a belief in the continued strength and resilience of the markets, despite external challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.