economy
March 6, 2026
Market turmoil is hitting most traditional safe havens. UBS says this is the place to hide
Pharmaceutical stocks like Eli Lilly and Merck are good places to help investors ride out a recent rise in geopolitical turmoil, according to UBS.
TL;DR
- Geopolitical tensions in the Middle East are causing global market volatility, with oil prices surging and traditional safe havens faltering.
- UBS analysts recommend pharmaceutical stocks as a defensive sector that can offer protection against geopolitical risks.
- Pharmaceutical stocks, including Eli Lilly and Merck, are seen as likely to ride out the conflict due to their defensive nature and low leverage.
- The sector is also poised to benefit from generative AI, which could boost research and development productivity.
- Valuations in the pharmaceutical sector are considered relatively cheap, and the sector is susceptible to a short squeeze due to high short interest.
Continue reading the original article