UBS On-Air: Market Moves
Top of the Morning: CIO Strategy Snapshot - What if?
May 5, 2025
Jason Draho, the Head of Asset Allocation Americas at UBS Chief Investment Office, shares his insights from Zurich. He examines the recent surge in U.S. equities, attributing it to optimistic trade signals and strong corporate earnings. Despite a negative GDP figure, Draho discusses the resilient U.S. economy and its adaptability amid challenges like tariffs. He also outlines asset allocation strategies, emphasizing the importance of defensive investments such as gold to navigate expected market volatility.
22:39
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The recent upside momentum in US equities is driven by optimism over trade agreements, strong corporate earnings, and solid economic indicators.
- Despite challenges from higher tariffs, the economy shows resilience, with moderate growth in corporate profits and steady employment figures.
Deep dives
Market Momentum Driven by Optimism and Economic Resilience
Recent market momentum has been largely fueled by optimism regarding trade deals, solid economic data, and corporate earnings. Optimistic signals from the Trump administration concerning potential trade agreements and a recommended reduction in effective tariff rates have lifted investor sentiment. Moreover, the April jobs report showed positive employment figures, which led analysts to suggest the economy is maintaining resilience despite existing tariff concerns. Coupled with technical factors, such as hedge funds closing short positions, these elements combined have supported a rally in U.S. equities, specifically the S&P 500, which experienced a notable increase across five consecutive trading sessions.
