UBS' new equity chief warns that a 10% plunge in the stock market this year will catch investors off-guard — and outlines how to protect against losses

, of 2,550, is the second-lowest among the 25 chief equity strategists tracked by Bloomberg. The median forecast is 2,950.

Since late 2015, the Fed has raised its benchmark interest rate from near-zero to a target range between 2.25% and 2.5%. Despite these increases, rates have remained historically low, giving both the economy and stock market an accommodative environment to continue expanding. This climate is a key reason why the economy is on the verge of its longest-ever expansion.

Although growth looks strong today, it usually takes nearly two years for interest-rate increases to slow economic growth, according to Trahan. Given that the most recent rate hike was in December, the economy should slow through the end of 2020, he said.However, the stock market only discounts such events about six months into the future, which explains why it is still trading with the perception that the economy is doing just fine.

He continued:"As we see it, the likeliest path to outperformance remains with a risk-off posture and we favor counter-cyclical sectors and stocks exhibiting low volatility and high visibility."

Source: News Formal (newsformal.com)

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

10 Most Interesting Announcements From Microsoft BuildHere are the most exciting announcements from Microsoft Build related to cloud, containers, DevOps, IoT and edge computing.
Source: Forbes - 🏆 394. / 53 Read more »

The 10 Biggest Problems With Last Night's 'Game Of Thrones' (Other Than That Starbucks Cup)That Starbucks cup fans noticed in last night's episode of 'Game Of Thrones' was the least of its problems. Here are ten more that you should be very worried about. You really need a new social media manager Oh FFS , please stop spamming old shit It wasn’t Starbucks
Source: Forbes - 🏆 394. / 53 Read more »

Comscore Cutting 10% of Its WorkforceComscore shares fell more than 10% a day after the media-measurement company reported disappointing first-quarter earnings and said it would reduce its head count.
Source: WSJ - 🏆 98. / 63 Read more »

Here's how Mollie Tibbetts' hometown is honoring her on what would have been her 21st birthdayNearly 10 months after college student Mollie Tibbetts was killed, friends and family honor her kindness on what would have been her 21st birthday. Honoring her is about surviving. So sorry for your loss. And surving, living. Incredibly sad She died at the hands of an illegal alien after he raped her. And the DEMOCRATS fight daily for these child molesters and murderers to allow them easy access thru open borders. And protect them in sanctuary cities.
Source: USATODAY - 🏆 100. / 63 Read more »

Petitions with 10 million signatures to impeach Trump delivered to CongressNational advocacy groups delivered to Congress petitions of what they said contained 10,000,000 signatures from people who support the impeachment of President Trump. Pelosi doesn't care she's a Russian agent. Then: Trying to convince SpeakerPelosi to impeach Trump
Source: NBCNews - 🏆 10. / 86 Read more »

Less Than 20% Of Americans Can Find Just 10 Asian Countries On A Map — Can You?If You Can Find Just 10/51 Asian Countries On A Map, I'll Be Seriously Impressed Because Americans are self centered . I don’t even remember being taught world geography as a kid . But every year we went over the civil war. ...yo, Egypt is in Africa... 🧐 yo cyprus- europe
Source: BuzzFeed - 🏆 730. / 51 Read more »

10 of the freakiest places around the worldRead about the catacombs of Paris and nine of the other freakiest places in the world where you can get a good case of the creeps safely. I went to CNN HQ one day and Brian Stelter felt me up. Now this is some good journalism! Maybe the first CNN article I’ve enjoyed in 3 years
Source: CNN - 🏆 4. / 95 Read more »

10 things you need to know before the opening bellThis is what traders are talking about.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Border apprehensions in 2019 have already broken 10-year record 'only 7 months in'U.S. Border Patrol Chief Carla Provost called for greater 'consequences' for migrants caught crossing into the U.S. outside of designated ports of entry. 7 months into the year 2019 huh.....really? And it's only May, the fifth month!
Source: Newsweek - 🏆 468. / 52 Read more »

10 mistakes people make onlineTake a look at this list of 10 mistakes people make online, along with do-it-yourself security tips Is knowledge power?
Source: USATODAY - 🏆 100. / 63 Read more »