UBS analysts recommend that investors capitalize on the recent U.S. stock market pullback, noting that historically, entering the S&P 500 after a 10% dip has yielded superior returns. Current economic conditions do not warrant a recession, with a modest GDP growth forecast of about 2% for the upcoming year.

Investment Strategy:

As the S&P’s forward P/E has decreased from 22.4x to 20.2x, UBS believes that the current pullback provides an attractive entry point for investors who are ready to act quickly.