UBS stated that clients are increasingly following hedging down risks.

Golden Finance reported that UBS Group stated its clients are preparing for a market downturn and warned that sentiment around a prosperous market could change rapidly. UBS mentioned during its third-quarter earnings announcement on Wednesday that, due to high valuations across most asset classes, “investors remain active but are increasingly focused on hedging downside risks.” Looking ahead to the fourth quarter, UBS pointed out that “as confidence in the outlook is tested and seasonal factors come into play, market sentiment could shift quickly.” Currently, there are almost no signs indicating that this situation will occur.