Global economy facing a soft landing - stocks more promising than bonds

Global economy facing a soft landing - stocks more promising than bonds

According to a report by e-fundresearch.com,
A soft landing for the global economy is approaching, which means greater upside potential for stocks compared to bonds, according to Evan Brown, head of multi-asset strategy at UBS Asset Management. The economy is supported by solid fundamentals and improving household and business sentiment. Additionally, the nearly $6 trillion currently invested in money market funds strengthens the outlook for risk assets. Central bank interest rate cuts could also lead to some of this money looking for higher returns.

According to an analysis of these factors, this could mean a positive environment for the market and the financial industry. Expectations of a soft landing for the global economy and support from solid fundamentals could lead to a rise in share prices. In the US in particular, economic resilience and growing real incomes are seen as positive drivers for equity investments. The positioning in US mid-caps is seen as promising, and the economic recovery in other regions such as Europe and the emerging markets ex China could offer further opportunities.

However, there are also risks, particularly in connection with Chinese stocks, which are valued neutrally. Geopolitical uncertainty and economic stress from the real estate sector could limit valuations and profits.

Overall, Evan Brown's statements suggest that the global economy and stock markets could experience positive developments in the coming months, providing investors with opportunities for attractive returns.