A snippet from UBS Global Wealth Management on US equities:
The market outlook is a function of how growth and inflation evolve over the next few quarters.
- Equities are pricing for the downward paths in both variables to be fairly smooth,
But with soft- and hard-landings still both in play, the market narrative will jump around based on incoming data shifting the probabilities between the two scenarios.
- This implies continued range-bound markets that lack consistent direction until something breaks, either positively or negatively
Its shaping up to a (Northern) summer of choppy trade.
