UBS: ‘We believe it is time to reduce equity exposure’

Wednesday, February 11, 2015
By Paul Martin

FEB. 11, 2015

And now UBS is warning on stocks.

In a note to clients on Wednesday, UBS strategists Ramin Nakisa and Stephane Deo warn that stock prices are not consistent with near-term risks.

“We think the calm of markets is not consistent with near-term risks,” the strategists write. “There are a number of forthcoming events that could destabilize markets and create uncertainty: chiefly the ongoing Greek negotiations but also to a lesser extent the March FOMC meeting and the UK elections.”

This note out of UBS comes a day after analysts at Credit Suisse cut their price target on the S&P 500 for the middle and end of 2015.

UBS adds that the market is currently being “very sanguine” regarding the possibility of a sell off, writing, “We believe it is time to reduce equity exposure, at least tactically.”

The firm adds that in extreme market scenarios, like a Greek exit from the eurozone, only Treasuries will provide protection to investors.

The Rest…HERE

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