UBS On-Air: Market Moves Ahead of the curve with Ulrike Hoffmann-Burchardi
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Aug 18, 2025 Get insights on the latest in U.S. equity valuations and potential market risks, with a focus on AI's influence on a possible bubble. Ulrike discusses the ongoing peace talks in Ukraine and their implications, alongside key retail earnings that could shift market dynamics. She also highlights crucial remarks from Fed Chair Powell that investors shouldn't overlook. Stay ahead of market trends with these fresh perspectives!
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Valuations Are Near Bubble Territory
- U.S. equity valuations have entered the top decile and show signs of froth based on forward and Shiller PEs.
- Bubbles require innovation, loose liquidity, and reflexive pricing, and not all three are fully present yet.
AI Fuels Narrative But Positioning Is Muted
- AI is the transformational innovation driving a powerful narrative across markets.
- Financial conditions are benign but macro fears limit broad risk-taking so far.
Buy Dips; Monitor Three Upside Catalysts
- Expect rate cuts, a Ukraine peace deal, or AI breakthroughs to push valuations higher.
- Use dips as buying opportunities as structural trends and potential peace outcomes offset macro murkiness.
