UBS outlines market outlook for 2025 and investment strategies for US stocks

UBS Global Wealth Management has released its market outlook for 2025, highlighting four potential paths for US stocks. The report suggests that the US economy may continue to grow, even with new tariffs, driven by deregulation and positive business sentiment. UBS predicts the S&P 500 could rise to 6,600 or even 7,000, depending on economic conditions and inflation rates. However, there is a significant risk of market losses, with a "tariff shock" scenario potentially dropping the index to 5,100. To navigate this uncertainty, UBS recommends eight investment strategies, focusing on technology stocks, utilities, and financials. The firm also suggests considering high-quality bonds, precious metals, and real estate as part of a diversified portfolio.