“We believe that the surprise could be more on the upside than on the downside,” strategists at Unigestion wrote in a note. “Any rally in the equity and credit space could trigger an unwinding of hedges and amplify the positive trend, which could lead to equity indices testing previous highs.”
UBS Wealth Management for one is weighing the possibility that a better-than-expected outcome in U.S.-China negotiations powers stocks higher.
Mark Haefele, chief investment officer at the world’s biggest private bank, told a Bloomberg Invest conference Tuesday that his firm is looking at bullish call options to “play the chance we get some kind of outsized trade deal.”
--With assistance from Daniel Curtis, Jonathan Ferro and Sid Verma.
This article was provided by Bloomberg News.