Chief Executive Officer Sergio Ermotti is reconstructing Switzerland’s biggest bank, retreating from capital-intensive trading businesses and focusing on its wealth management unit as regulations from the Basel Committee on Banking Supervision require more capital for some activities, cutting profitability. UBS, bailed out by the Swiss government during the 2008 financial crisis, announced plans last year to cut 10,000 jobs and scale back its investment bank.
That is, they will focus on structure, not flow, otherwise known as delever.
Then we have Cramer, who speaks for the retail investor:
Uncertainty in Washington has created a situation where it is simply "not prudent" to buy most stocks right now and investors may be better off staying on the sidelines, CNBC's Jim Cramer said. "I'm searching for why the market isn't down more, because it just reads real bad," Cramer said on "Squawk on the Street" Monday. "I think you can sell in October and then buy at the bottom in November. Every one of these sell-offs have given you a better opportunity to buy." (Related: On the brink: Senate to meet as shutdown looms ) "I just think for those that are trying to be prudent, taking cash off now - [and] betting a week from now that there will still be a lot of rancor - is a good bet, not a bad bet," he said. "This is one where all of us are way over our heads, including, unfortunately I think, [House Speaker John] Boehner and the President." CNBC
Lets watch the market and see if his advice sticks.
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