From TINA to TIARA

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UBS House View, Investor's Guide

We’re moving from a TINA (There is no alternative) market to a TIARA (There is a real alternative) one. What does this mean for equities and your portfolio? For much of the past decade, growing wealth has largely been about buying equities and staying invested. Central bank stimulus held cash and bond yields firmly below rates of inflation, while revenue growth from technology giants, falling tax burdens, and low borrowing costs supported stocks. Global equities have returned an annualized 9.3% above inflation, versus –0.8% for cash (in US dollars). It’s been a TINA market.