UBS On-Air: Market Moves House Call: Talking Equity Markets with UBS Asset Management
Jun 29, 2025
Join Jeff Hans, a Portfolio Manager at UBS Asset Management, as he dives into the recent performance of US equities. He discusses the tug-of-war between growth and value stocks, fueled by tech sector earnings. Jeff also shares intriguing insights from the latest investor conferences, highlighting stability in financials and the mixed outlook for consumer spending. With a cautious sense of optimism, he sheds light on the potential benefits of deregulation for mid-sized businesses, aiming to enhance market growth.
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From Recession to Wall of Worry
- The market moved from a recession scenario to a "wall of worry" scenario by mid-2024.
- Markets tend to grind higher despite pockets of volatility under this outlook, supported by tariff off-ramps and solid corporate earnings.
Growth Stocks Lead on Earnings
- Growth stocks outperformed value by about 12% in the recent quarter, trading at a 75% valuation premium.
- Earnings growth, especially in AI-exposed mega cap tech, drives this performance, while value stocks face risks from slowing growth.
Deregulation Boosts Value Stocks
- Deregulation is a key catalyst for value stocks, especially financials which make up 25% of the value index.
- Reduced regulations lower capital costs, expenses, and allow executives to focus on growth, possibly improving valuations over years.