Global equity markets had their worst week since early 2021. But in the view of economists at UBS, further equity market downside may be limited.

Short-term market direction can remain volatile

“With a number of critical market factors still in flux, the short-term market direction can remain volatile.”

“For longer-term investors, we don’t think it is a bad thing if market volatility takes some air out of the more speculative corners of the market. Nor is it a bad thing if current volatility means that some secular growth names are offered at their best prices in months.”

“It’s also important to remember that economic growth remains robust, which should support cyclical and value sectors in the short-term.”

“We keep our end-2022 S&P 500 price target of 5,100.”