UBS Predicts Impending 1990s-style Economic Boom

UBS Global Wealth suggests that instead of a repeat of the "Roaring 20s," the current economic outlook resembles a 1990s-style boom. Despite concerns over inflation and rate shocks, the economy grew 4.9% in Q3 2022. UBS compares the current hiking cycle to that of 1994, predicting a soft landing in 2024 with modest rate cuts. While there are differences from the Clinton era, UBS believes something significant is happening in the US economy. U.S. stocks have been under pressure from rising benchmark rates, but the S&P 500, Dow Jones, and Nasdaq have shown positive performance this year.