How to earn more than on foreign currency deposit, according to UBS
It will be challenging for investors to earn on foreign currency deposits and even the strongest bonds in the foreseeable future. The real yield on them will remain negative, warns UBS Global Wealth Management. The Swiss bank advises investors to think about buying more risky assets, as global central banks may provoke further moderate inflation.
The real yield of 10-year treasury securities yesterday fell to -0.98% after the Fed's pigeon-shaped statement the day before, and the monthly closing in this area will be record low in history, UBS experts write.
Gold prices will continue to grow thanks to the demand for protective assets, bank experts predict.
The coronavirus crisis may provide excellent opportunities for long-term investment in private assets ("private equity"), the analysts of the bank concluded.