While bond markets are signaling increasing risks, equity markets have been more positive. As of April 1, the S&P 500 was up 9% from its 2022 low on March 8 and just 5% below its all-time high.. UBS economists expect the S&P 500 index to rise slightly towards 4,700 points by the end of 2022.
Additional comments
“The conflict between Russia and Ukraine continues to weigh on growth and earnings prospects. Given the recent uncertainty, lowering our global revenue growth outlook to 8% (from 10%) for this year and 5% (from 7%) for 2023. We also continue to favor a selective approach to equities, rather than positioning ourselves for a broad rally.”
“Our base case is now just a modest rally for stocks, with our year-end forecast for the S&P 500 at 4,700, less than 4% higher than current levels. We also note that periods of increased volatility and uncertainty often turn out to be the best times to find long-term value in equities.”
Source: Fx Street
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