UBS: AI Sector Fell 5% Last Week; Tech and Non-Tech Synchronized Rally Undervalued
Source:
www.techflowpost.com
UBS believes implied correlation is too low. If interest rate and oil price pressures ease, the midterm election risk does not materialize, and earnings beat expectations, tech and non-tech sectors may rally in tandem. The firm recommends buying S&P 500 December out-of-the-money call options, buying industrial call options, selling consumer staples call options, going long utilities versus consumer staples, going long KOSPI versus NIFTY 50, and reducing energy exposure.