UBS On-Air: Market Moves Top of the Morning: CIO Strategy Snapshot - All eyes on the Fed
Sep 15, 2025
Jason Draho, Head of Asset Allocation Americas at UBS, shares insights following a brief hiatus. He discusses resilient market performance amid economic uncertainties and the significance of upcoming Fed rate cuts. Jason predicts a potential 25 basis point reduction while analyzing critical economic indicators. Strategies for navigating market volatility are explored, including a bullish outlook on equities and recommendations for technology and financial sectors. He emphasizes gold as a hedge against interest rates and a weaker dollar, all while previewing the important FOMC meeting.
AI Snips
Chapters
Transcript
Episode notes
Markets Price A Soft‑Landing
- Investors are pricing a soft-landing narrative: growth weakens now then improves in 2026 as inflation rolls over.
- That outlook supports both equities and bonds and explains low volatility and steady gains.
Low Volatility Fuels Risk Taking
- Volatility is near multi‑year lows across equities and rates, encouraging more risk taking.
- That lower volatility and improved positioning have been a tailwind but leave limited margin for error.
Prepare For A 25bp Cut And Watch The Dot Plot
- Expect a Fed cut this week and lean toward a 25 basis‑point move rather than 50.
- Watch the dot plot and Powell's press remarks for guidance on the number and timing of future cuts.