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Anticipated market correction of 10-15% imminent; these shares promise a solid initiation

Financial institution UBS issues warning of potential market losses ranging up to 15% in the imminent future, advises adoption of hedging tactics.

Anticipated Market Correction of 10-15% Imminent - These Stocks Present Notable Starting Points
Anticipated Market Correction of 10-15% Imminent - These Stocks Present Notable Starting Points

Anticipated market correction of 10-15% imminent; these shares promise a solid initiation

The Bank of Japan's unexpected interest rate hike has led investors to liquidate their positions to repay yen loans, causing a ripple effect in global markets. This move, along with other factors, has UBS tactically bearish about the short-term outlook for stock markets over the next two months.

UBS warns of a potential drop of 10 to 15 percent that could be triggered by disappointing economic data. Rebecca Cheong, head of U.S. equity derivatives strategy at UBS, assesses the recent market recovery as qualitatively weak and the overall market as fragile. She recommends hedging strategies that would benefit from a 10 to 15 percent drop in the S&P 500 over the next 1-2 months.

However, the article does not provide specific information about the expected timing or magnitude of the potential correction. It does mention that a potential correction could provide an opportunity to accumulate long-term stocks at bargain prices using the BÖRSE ONLINE Aktien für die Ewigkeit Index.

Developed by Boersenmedien AG, the BÖRSE ONLINE Aktien für die Ewigkeit Index is ideal for long-term wealth accumulation due to its very low volatility and broad mix of promising sectors. The index includes 30 global conglomerates such as Apple, Berkshire Hathaway, Allianz, and more. The index certificate WKN DA0ABN allows investors to participate nearly one-to-one in the development of the 30 companies in the index.

Boersenmedien AG has developed the BÖRSE ONLINE Aktien für die Ewigkeit Index and holds the rights to it. They have also concluded a cooperation agreement with the issuers of the displayed securities, granting them a license to use the index.

It's important to note that while the BÖRSE ONLINE Aktien für die Ewigkeit Index presents an opportunity for long-term investment, it does not discuss any potential risks associated with investing in the index.

The crash on the Japanese stock market, triggered by so-called "carry trades", did not go unnoticed by other global exchanges. Persistent stock sales by UBS clients, weak corporate buybacks, and potential additional selling pressure from trend-following traders reinforce the pessimistic assessment.

UBS sees small caps, financials, and high-yield sectors as particularly vulnerable to price declines. However, there are no specific UBS forecasts for the Börse Online Aktien für die Ewigkeit Index's stock price for the next two months available in the search results.

The article concludes by mentioning that there are other related articles available, including one about a potential 177% gain by 2030 and another about a potential 53% upside for Deutsche Telekom stock.

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