The financial firm noted that its managers and executives “do not expect to see the same degree of market movement that was evident in March, when the pandemic reached the U.S. Even in a potential Blue Wave outcome, which has become a popular subject of investors’ concerns, we would expect the equity impact to be roughly neutral, as fiscal spending would offset much of the impact of incrementally higher taxes.”
“Investors should adhere to their strategic portfolio allocation for the long haul. There is ample time for tactical positioning in advance of the election,” UBS said. “The campaign will become more acrimonious around September, and tactical positions will become a more important consideration.”
“Covid-19 remains the top investor concern globally, yet there is significant divergence by region on the focus of post-recovery plans," said Paula Polito, divisional vice-chairman at UBS Global Wealth Management, in the press release. "While more Asians and Europeans see an opportunity for a ‘green’ recovery, US investors place more importance on a traditional economic turnaround.”