Markets Will End Year Higher: Friedman

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April 10 (Bloomberg) –- In an exclusive interview, UBS Wealth Management Global CIO Alexander Friedman discusses the global recovery, the Fed’s forward guidance and investing in technology with Bloomberg’s Manus Cranny at the UBS Wealth Management Summit in Davos, Switzerland. (Source: Bloomberg)

We have alex friedman.

Great to have you with us.

Hope you have a good date and -- day in davos.

I have china, which is potentially slowing down.



What worries you the most?

Or concerns you the most as a cio?

The biggest concern i have is to avoid the short-term concern.

We read the headlines and say, oh boy.

Does this change our fundamental view?

We are not short-term investors.

We have conviction there is a global recovery underway.

The equity markets will and higher than they started.

Fundamentally, nothing has changed.

We have not had a big market correction.

When you get together with the other cios, you say that is a risk for 2014? or an opportunity?

Let me make it simple.

I think the markets will and the year higher than they started.

Volatile along the way.

It if there is a 5-10% opportunity -- correction, that is a buying opportunity.

It will help us pick up some assets cheaper.

We were talking about the federal reserve and the dots.

Only what you think -- tell me what you think.

I will get in trouble for this.

No you won't. is a little like the emperor with no clothes.

If i look at what the fed has done, they are going back to all be red and green lights.

The dashboard.

We see a lot of red lights, so we are not moving too quickly.

The six-month is not something you should worry about.

We will see whether janet is right.

Technology in the headlines.

Talk me through -- are you one of the cios that says, i am concerned about our technology holdings.

Tech is an interesting one.

If you look at the overall industry on a valuation basis, it is down.

What has gotten the headlines is the consumer tech.

It is going down substantially more.

This is a rotation from newtek to old tech.

Overall, tech should do well this year.

Ceos have a lot of money.

Interest rate are going up.

They have to put the money to work.

Technology is one of the big beneficiaries.

75% of the sector is enterprise.

Business, not consumer.

That's translate into spending for the business side -- that should translate into the spending for the business side.

The cheapest sector is technology.

Trading at a discount on the s&p. trying to discern, as you said, slightly older -- we have just questioned the validity of forward guidance.

That is a fair debate.

The reference to slack, the divergent moves of the central banks.

That has longer-term applications.

Take me through your view of that divergence.

We are in the proverbial inflection point.

We have been in a uniform central-bank policy.

Loose monetary policy everywhere.

Now we see a different chance.

-- divergence.

I would say canada and the bank of england are mostly will -- most likely to raise rates sooner.

U.s. is in the middle.

And then we have the bank of japan.

Truly depend on the fundamentals of the economic recovery.

We are confident that the u.k. and canada are doing well.

We are confident that the u.s. is doing ok.

Europe is still uncertain.

They are heading more where we have two ees.

Everything i read in terms of what the ecb -- negative rate's, simulate quantitative easing.

It is probably not what europe needs.

What is your sense of what will have a dramatic impact for investment here in europe?

We need a cheaper europe.

That is a huge job -- drag.

How does he get the euro down?

The dollar will go up.

It will accelerate on the back of a tighter monetary policy.

Mario draghi needs to be -- he can't live on a hope and a prayer.

The sense that the dollar is going to go higher.

He can inject liquidity.

Well ago to negative interest rates or bond buying?

He is waiting for another three months of data.

Rate to have you with us.

-- great to have you with us.

Alex friedman, the global ceo.

We will try to have a selfie.

We will get technology --

This text has been automatically generated. It may not be 100% accurate.


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