UBS' asset management arm weighs in on the market outlook later in the year
The firm says that they expect some form of emergency approval of between one to three coronavirus vaccines during Q4 2020, adding that they expect "full approval for broad inoculation to begin by the middle of next year".
Considering such a development, the firm says that they would expect the vaccine approval to help spark a rotation in the equities space, with investors to shift from mega-cap tech firms - as per what we have been seeing - to value/cyclicals instead.
As for equities in general, the firm says that they prefer "pockets outside of the US", noting that emerging markets, particularly Latin America, are a standout as the respective currencies look rather attractive as well.
In the broader scope of things and if you look out to the next 2-3 years, this particular theme is a rather common one as also outlined by Morgan Stanley here yesterday.
But of course, timing is everything and a lot of this will be highly dependent on a vaccine breakthrough and how that will change the global economic landscape i.e. make things go back to the way they once were pre-coronavirus.
