UBS On-Air: Market Moves Ahead of the curve with Ulrike Hoffmann-Burchardi
Jul 14, 2025
This week, the discussion dives into the impact of recent tariff developments on market volatility. With high equity valuations creating skepticism about rebounds, the focus shifts to how investors can navigate uncertainty. Listeners will gain insights into interpreting crucial economic data, including June CPI and bank earnings, to uncover investment opportunities beyond popular opinion.
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Equity Market Skepticism and Reality
- Investors remain skeptical about the U.S. and global economic growth despite strong equity market rebounds.
- Buying the S&P 500 at an all-time high usually yields better returns than waiting for a pullback.
Buy at Market Highs
- Waiting for a 5% or larger pullback can be costly as the S&P 500 often gains more than T-bills during such periods.
- The data advises buying at the peak rather than attempting to time the pullback.
Valuations Need Catalysts
- High equity valuations alone do not predict market timing for a pullback.
- A negative surprise, like tariff escalations, is usually needed to trigger a market decline.