Long-dated Treasury yields remain elevated, with the 10-year Treasury yield at 4.7%. Treasury Secretary Scott Bessent has announced plans to double the buyback program to help stabilize these yields. UBS analysts suggest that while higher yields can pose challenges for equities, strong corporate earnings and growth expectations may continue to support the stock market.
They recommend that investors prioritize quality bonds with short- to medium-term maturities to mitigate volatility and consider a mid-single digit allocation to gold, which could benefit from fears of currency debasement linked to financial repression