The S&P 500 Index hit record highs on Monday. Strategists at UBS continue to see upside for equities.

Energy and financials set to outperform

“While volatility is to be expected, we believe a still-accommodative policy backdrop, along with solid economic and corporate fundamentals, should support further upside for equities.”

“We favor the likely winners from global growth, including energy and financials, balanced with exposure to more defensive sectors like healthcare.”

See – S&P 500 Index set to race higher above the 5000 level – Credit Suisse