UBS’s Cheong Turns Bearish and Sees 10% Drop Coming for S&P 500

  • Equity derivatives strategist recommends buying tail hedges
  • “I am tactically bearish for the next two months,” Cheong said

The UBS headquarters in Zurich, Switzerland.

Photographer: Stefan Wermuth/Bloomberg
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UBS AG’s top strategist for US equity derivatives said she’s expecting the S&P 500 to fall at least 10% from its peak within a month.

“I am tactically bearish for the next two months,” Rebecca Cheong wrote in a note to clients on Tuesday. “Even a slight disappointment in any of the upcoming economic releases could trigger a large unwind.”