UBS On-Air: Market Moves Top of the Morning: CIO Strategy Snapshot - An exceptional debate
4 snips
Apr 28, 2025 Join Jason Draho, Head of Asset Allocation Americas at UBS, as he dives into the recent surge in U.S. equities and whether investors are ahead of the curve amidst ongoing macro uncertainty. He explores the implications of U.S. exceptionalism for economic growth, emphasizing the role of productivity in maintaining it. The discussion also covers how recent trade developments and the Federal Reserve's actions are shaping market sentiments, alongside strategic insights for navigating current volatility, especially in tech and equities.
AI Snips
Chapters
Transcript
Episode notes
US Market Rally Is Technical
- US equities had one of their best weeks in 2025 with major indexes posting strong gains and volatility declining.
- The positive moves led by tech were more technical short covering than fundamental, with investors still cautious about future downside risks.
Trade Talks Drive Market Mood
- A softening tone on tariffs and a roadmap for negotiations created optimism in markets.
- However, investors need clear progress soon, especially with ongoing risks like trade impacts on supply chains.
Understanding US Exceptionalism Debate
- The debate on US exceptionalism needs clearer quantification across GDP growth, trend growth, return on capital, and valuation premiums.
- While US growth advantage is narrowing, strong productivity and capital returns could allow exceptionalism to persist.