FXStreet reports that economists at UBS continue to see equity upside.
“Our base case is that while growth rates may have peaked, growth will remain robust in the coming quarters while inflation recedes from this year’s spike. Clearly, stagflation would undermine this scenario, but we think these fears are overdone. We expect only a modest impact on growth and inflation from the current increase in energy prices.”
“We continue to see equity upside and recommend buying the winners from global growth, including energy and financials. Given that part of the rise in energy has been due to the run down in investment in fossil fuels, we believe investing in traditional energy and industrial metals as well as in greentech is a diversified, realistic way to participate in the transition to net-zero carbon.”