UBS Global Wealth Management note to clients from Friday:
stocks could rally 11% by the end of this year, to circa 3150
UBScite central intervention since the coronavirus pandemic outbreak started
- "If some combination of testing, tracking, and treatments enables a sustainable end to lockdowns, the massive monetary and fiscal stimulus rolled out over recent months could lead to a recovery to pre-crisis output by the end of 2021"
- "Over recent weeks, a path to our upside scenario, in which we see a sustained return to normality from June, has emerged"
On the risks ahead:
- an easing of lockdowns might trigger a second wave of coronavirus infections
(Please note this is a view out to the end of the year, if you are a shorter term trader it may be better to pay heed to the moves lower on the equity indexes today .. and why )
