Korean stock market FOMO risks crash. US stocks have PEAKED.

UBS downgrades the U.S. stock market. Here’s what has the investment bank worried

UBS’ top equity strategist dialed back his view on U.S. stocks, citing mounting risks from a weakening dollar, stretched valuations and policy turbulence in Washington.

Andrew Garthwaite, head of global equity strategy at the investment bank, downgraded American equities to “benchmark” in a fully invested global equity portfolio, arguing that the factors that powered years of outperformance are starting to fade.

The dollar risk is a central concern, Garthwaite wrote. UBS forecasts the euro climbing to $1.22 by the end of the first quarter and sees “asymmetric structural downside risks” to the greenback. Historically, when the dollar’s trade-weighted index falls 10%, U.S. equities underperform by roughly 4% in unhedged terms, according to the bank.

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