While noting this, UBS came out with the research report suggesting further upside momentum despite expecting additional volatility in the near-term.
The note cites three reasons for its bullish bias as follows:
- Whatever the outcome of the US election, we think the new stimulus will be rolled out after the vote and lift economic growth.
- Successful vaccine trials will increase certainty about the economic outlook. News on COVID-19 vaccines and treatments have not all been positive.
- Central bank policy is making the long-term case for equities over cash even clearer.