The Swiss bank’s chief investment office (CIO) favours harnessing market turbulence to enter defensively instead of shying away from volatility.

With volatility likely to stay high into the year-end due to the pandemic, US-China tensions, and the upcoming US presidential election, UBS recognises that elevated volatility can have costs because it can lead to inaction. This means investors may sit on the sidelines for longer. However, rather than shying away from volatile markets, the Swiss bank recommends investors harness market turbulence to invest defensively by using three approaches if they are concerned about the risk of bad m

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