UBS: A balanced allocation can be adopted in the near term to avoid significant portfolio adjustments

People’s Financial News, April 8 — After the announcement that the US and Iran reached a temporary ceasefire agreement, international oil prices plummeted sharply, with WTI crude oil futures dropping over 10%. UBS Wealth Management Investment Director Office (CIO) pointed out that although a short-term ceasefire may help boost market sentiment, given the high uncertainty surrounding the US-Israel-Iran conflict, investors should not over-hedge and should maintain diversification and appropriate hedging strategies to cope with short-term volatility while seizing long-term opportunities. At this stage, energy supply may be difficult to restore quickly. Whether parties can reach an agreement quickly remains to be seen. If supply disruptions last longer and oil prices remain high, investors may consider gradually reducing portfolio risk. Considering risk management and loss control, investors should prudently manage market exposure that is highly sensitive to oil prices, focus on defensive sectors with good long-term growth prospects that are less affected by energy supply disruptions. Recently, the market has experienced significant fluctuations due to news, and investors may consider adopting balanced allocations rather than betting on geopolitical developments, and avoid hasty and large-scale adjustments to strategic asset allocations.