UBS Team Says Get Ready for Another Global Equity Rotation
- Liquidity tailwind for market to fade in 2Q: UBS strategists
- Market drivers likely to shift to growth and earnings
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Less easy financial conditions will likely lead to lower overall returns in global markets while favoring growth stocks over value, according to UBS Group AG.
Growth and earnings will become bigger drivers of returns next quarter, strategists including Bhanu Baweja wrote in a note Monday. A bottoming in real rates and credit spreads will signal the end of a liquidity “tailwind,” they said.