UBS On-Air: Market Moves Top of the Morning: CIO Strategy Snapshot - No news is news
Apr 21, 2025
In this engaging discussion, Jason Draho, Head of Asset Allocation Americas at UBS Chief Investment Office, navigates the recent calm in the market amid minimal tariff news. He provides updates on tariff negotiations and key macroeconomic developments, including retail sales and corporate earnings. Jason shares insights from Fed Chairman Powell's remarks and advises on how to strategically position portfolios for the current market environment, blending short-term defenses with long-term growth strategies.
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Tariff Negotiations Key for Markets
- Tariff negotiations remain silent but crucial for market stability in the coming weeks.
- Investor focus centers on signs of progress and potential de-escalations with countries like Japan, Korea, and Canada.
Fed's Rate Cut Depends on Jobs
- The Fed sees current policy as appropriate amid conflicting inflation and growth pressures.
- Rate cuts depend on labor market weakening, especially rising unemployment rates.
Fed Independence Under Pressure
- Political pressure to remove Fed Chair Powell challenges Fed's independence and market confidence.
- Interference risks higher inflation, weaker dollar, and increased risk premiums, hurting overall market value.