- Mark Haefele – chief investment officer at UBS Wealth Management, which oversees $1.4 trillion in assets – highlighted five ways investors can position their portfolios for the uncertain months ahead.
- While the timeline for a vaccine is unknown, Haefele expects an economic recovery next year and said now is the time for investors to pivot into stocks that will benefit.
- He also said that opportunities can be found in gold and sustainable investments.
- Investors waiting for a large correction to dive into the market may be disappointed, Haefele said, especially if a vaccine is announced sooner than expected.
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With a blurred vaccine timeline and uncertain US election ahead, portfolio construction can be intimidating.
But Mark Haefele – chief investment officer at UBS Wealth Management, which oversees $1.4 trillion in assets – says investors holding cash on the sidelines and waiting for a large correction “run the risk of disappointment,” particularly if a vaccine arrives sooner than expected.
In a recent note to clients, Haefele broke down five pro-active measures investors can make now to position portfolios for coming months.
Take advantage of upcoming volatility
Although Haefele expects near-term volatility, he’s confident about the longer-term trajectory for the economy and said that investors should “put excess cash to work straight away.”
Cautious investors can use near-term volatility to build up positions for the long term. This can be done through a “disciplined phasing-in strategy,” or through options or structured solutions.