UBS Group strategist: Expects the S&P 500 index to fall at l...

UBS Group strategist: Expects the S&P 500 index to fall at least 10%. The head of UBS Group's USA stocks derivatives strategy stated that she expects the S&P 500 index to decline by at least 10% from its peak within a month. "I strategically put for the next two months," wrote Rebecca Cheong in a report to clients on Tuesday. "Slightly disappointing upcoming economic data could trigger a large-scale retreat." She recommended investors to hedge the tails of ETFs to prevent losses and listed iShares Russell 2000 ETF (IWM), Financial Select Sector SPDR Fund (XLF US), and iShares iBoxx High Yield Corporate Bond ETF (HYG) as top choices. Cheong added that while her view reflects increasingly strong bearish sentiment in the market, it is not a long-term forecast. "Without any news events, the market may continue its modest downward trend."