Epstein Secrets

strials remain a significant concern. Most of the rest of the market, both the S&P and the Russell 2000, seems fully valued except a few big Banks, Utilities, Airlines, and some of our specific stock picks. We do not believe that a recession looms or that S&P profits will fall again in 2016. We also do

ugh vote to retain investment, but allowing sufficient time for negotiations with Brussels. EU membership renegotiations will begin at this month's European Council meeting. A deal seems more likely at the February Council meeting at the earliest. Mr Cameron's four themes for renegotiation are explored in our 2

nal support for Spanish banks can be seen as the starting point for greater European support and oversight for banks, to be discussed at the upcoming European Council. ¢ Greece's debt remains unsustainable, but the risk of a euro exit over the next six months has diminished after the 17 June elections, which have

preferred cyclical sectors. We also like Energy. e We are cautious on Materials, where we expect margin pressure to continue, as well as Telecom and Utilities, due to high valuations. Strategic (1 to 2 years) °¢ We like medium-sized US companies, which should benefit from robust earnings growth in the lon

yment rate for October 6 Nov US presidential and congressional elections 8 Nov The 18th National Congress of the Communist Party of China 22-23 Nov European Council 2 UBS Global growth expected to be around 3% in 2012 and 2013 Real GDP growth in % Inflation in % 2011 2012F — 2013F 2011 2012F — 2013F Americas

arnings growth. Our sector stance in the US Sectors Consumer Discretionary Consumer Staples Energy Financials T Healthcare ndustrials Telecom Utilities aterials Viclelulsalel vy) vial ws Source: UBS Note: Past performance is not an indication of future returns. For further information please con