UBS House View Investment Strategy Guide March 2026

This document is an investment strategy guide published by UBS Financial Services Inc. in March 2026. It addresses current market conditions and investment opportunities, particularly in relation to the rapid growth of artificial intelligence (AI) capital expenditures. The report outlines the implications of increased competition and volatility in the US equity market, particularly in the technology and communication sectors. It discusses the need for investors to adopt a selective approach amid these market risks, suggesting diversification into sectors such as industrials, consumer discretionary, and health care. The guide also highlights the anticipated macroeconomic environment, including expected Federal Reserve rate cuts and their potential impact on inflation and consumer spending. Additionally, it emphasizes the importance of high-quality bonds as a buffer against equity market volatility. The document concludes with a positive outlook for global equity markets, encouraging investors to review their portfolios in light of recent market movements.