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UBS has highlighted several stock ideas it favors for 2024, as it forecasts massive cuts to interest rates next year. The investment bank expects the U.S. will see slower economic growth and strong disinflation leading to an interest rate cut of 275 basis points . Given the economic outlook, UBS strategists recommend a number of trades to clients for 2024. All the sectors apart from software trade on bigger discounts than normal against their US peers," the UBS strategists said. To reflect that view, UBS strategists said they favored gaining exposure to the KraneShares CSI China Internet ETF in 2024.
Persons: Jonathan Pingle, Gerry Fowler, Sean Simonds, KWEB Organizations: UBS, Federal, CNBC, U.S, Investors, China Tech, Internet Technology, CSI China Internet Locations: U.S, China
The odds of a fourth-quarter rally for the S & P 500 are coming down as higher rates and slower growth pressure equities, according to Morgan Stanley's Mike Wilson. The S & P 500 approached its 200-day moving average — around 4,224 — earlier this month. .SPX YTD bar SPX in 2023 Wilson now forecasts the S & P 500 to fall to 3,900 by the end of 2023. According to the CNBC Market Strategist Survey , the average 2023 target for the S & P 500 is at 4,392, with the median target even higher at 4,500. Sean Simonds of UBS is the only other top strategist who forecasts the S & P 500 pulling back to 3,900.
Persons: Morgan Stanley's Mike Wilson, Wilson, Stocks, SPX, Sean Simonds, Oppenheimer's John Stoltzfus, — CNBC's Michael Bloom Organizations: Federal, CNBC Market, Survey, UBS
Here are 20 stocks that UBS says will post better-than-anticipated earnings in Q2. During the first week of Q2, earnings estimates for the quarter were revised lower by just under 1 percentage point, Simonds noted. 20 stocks with the most earnings upside in Q2While stocks broadly may struggle to achieve earnings growth in Q2, UBS analysts are confident that some companies can blow estimates out of the water. Below are the 20 US-based stocks that UBS analysts believe have the most earnings upside in Q2 compared to consensus estimates. Note that one company, Wintrust Financial Corporation, already reported Q2 earnings on July 19.
Persons: Sean Simonds, Simonds Organizations: UBS, Wintrust Financial Corporation
As recession fears keep flaring up again on Wall Street, investors can find safety in cheap, dependable, defensive stocks, according to UBS. The UBS playbook advises investors to stick to defensive stocks rather than the types of cyclical companies stocks that have benefited from high inflation. To be sure, investors have worried that defensive stocks have grown too expensive. But UBS pointed to several defensive groups that remain cheap, including telecom and insurance. Given this backdrop, here are some of UBS' cheap defensive stocks.
Here are 40 inexpensive stocks that UBS says will fare well in a recession. As the US economy continues to move closer to a recession, investors would be wise to stick with defensively oriented stocks, according to UBS. UBS40 cheap defensive stocks to buy nowHowever, Simonds cautioned that not all defensive stocks are worth buying. Instead, investors should target inexpensive defensive stocks since they're much more appealing than their pricey peers when the economy weakens. UBS shared the following 40 defensive stocks that are cheap based on valuation metrics like price-to-book (P/B), have positive earnings momentum, and have a minimum market cap of $3 billion.
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