UBS raises year-end forecast for MSCI AC World index to 830, signaling potential 6% upside

From Investing.com: 2024-06-04 06:48:02

UBS analysts have raised their year-end target for the MSCI AC World index to 830, indicating a potential 6% upside. Key factors include positive risk appetite signals, expectations of slowing US wage growth, and the market’s positive reaction to weaker data.

UBS is optimistic about long-term growth driven by Generational AI (Gen AI), which could boost productivity growth by 1% from 2028. They also highlight positive recent earnings revisions and performance, along with the potential for an extended pause by the Federal Reserve.

UBS sees the possibility of a “defensive-led bull market” supported by defensive sectors. Despite acknowledging potential downside risks like high profit margins, they believe the positive factors driving their revised forecast outweigh these concerns.



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