UBS believes that the market is pricing the Federal Reserve's tightening path too aggressively and is optimistic about fixed income assets and gold

UBS Chief Investment Officer Mark Haefele and his team have stated that the market's pricing of the Federal Reserve's tightening path is too aggressive, and the actual rate hike may be lower than expected. UBS expects inflation to steadily decline over the next six months, maintaining an attractive rating for fixed income assets, and expects the S&P 500 index to grow profits by 25% this year and 14% in 2027, respectively. UBS sees a drop in gold prices to around $4000 per ounce as an opportunity to increase holdings and expects it to rise to $5400 around September 2027.