As expectations for Federal Reserve rate hikes heat up, UBS issues a "buy and sell list": buy stocks on dips, wait for a pullback in gold.

BlockBeats News, September 8 - The U.S. added 162,000 non-farm payroll jobs in August, far exceeding the market expectation of 55,000, marking the largest increase since March, with the unemployment rate holding at 4.1%. Following the data release, the market's probability of a 25-basis-point rate hike by the Federal Reserve in September rose to approximately 60%. UBS believes that, compared with whether to hike rates, whether the hike stems from economic strength or inflationary pressure is more important for investment portfolios.

UBS continues to favor global equities, recommending using volatility to buy on dips while earnings prospects remain robust, with a preference for themes such as AI, power and resources, and longevity. In fixed income, UBS no longer advises locking in yields on short-to-medium-term bonds as a cash substitute, but believes that higher yields on medium-to-long-term high-quality bonds offer allocation opportunities.

UBS stated that tightening policies against a backdrop of a strong economy could extend the dollar's strength cycle through capital inflows and relative economic performance, and investors could reduce excess dollar positions when the dollar strengthens. Gold may face short-term pressure from rising real interest rates and a stronger dollar, but it can still serve as a long-term hedge and diversification tool, and investors can wait for a pullback in gold prices before building positions. (Jin Shi)