UBS has identified three places for investors to put money as volatility builds around the Federal Reserve’s September decision. The bank, led by Mark Haefele, recommends equity dips provided earnings prospects remain strong, the medium-to-long part of the yield curve, and gold as a portfolio hedge and diversifier. August’s US labor data hardened the case for tightening with 162,000 nonfarm payrolls added, well above the 55,000 consensus forecast, while unemployment held steady at 4.1%. CME FedWatch put the probability of a September hike at 60.4%, rising to 85.8% by December. UBS strategists separate a hike driven by solid growth from one driven by sticky inflation, arguing that this distinction matters far more than the next policy meeting.
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