UBS expects the uptrend in emerging markets to last longer and adjusts its previous assessment.

UBS strategist predicts that the duration of the emerging market stock outperformance will far exceed their previous forecasts. UBS previously only had a bullish view on this asset class until the end of March, but has now canceled this assessment. The bank has been overweight on emerging market stocks since early September and predicts their strong performance will continue into the first quarter. However, UBS adjusted its viewpoint this week, with emerging markets strategist Manik Narain stating that there are strong reasons to support the uptrend at least until the end of the year. "We do not rule out the possibility of the strong performance continuing for several more quarters," Narain, based in London, said. He stated that the previous assessment was a tactical allocation originally intended to last for a few months; but "given the strong tech cycle data emphasized by our tech team, we have extended this view and strictly speaking, we have not set a specific end date at this time."