UBS remains optimistic on the global equity outlook even as investors grow uneasy about stretched valuations and an uncertain path for US monetary policy amid the ongoing government shutdown.Ulrike Hoffmann-Burchardi, global head of equities at UBS Financial Services, acknowledged that “concerns over high valuations persist” and that the Federal Reserve’s policy outlook “appears murkier” as the shutdown clouds the economic picture and delays key data releases.However, she said the bank still sees the current bull market as resilient. “Despite the strong gains in equity markets this year, we continue to believe this bull market has room to run,” Hoffmann-Burchardi said, adding that investors should remain positioned to benefit from further upside.UBS analysts note that while short-term volatility is likely as markets digest conflicting economic signals, fundamentals remain supportive: corporate earnings have broadly outperformed expectations, liquidity conditions are improving, and global risk appetite remains firm. The bank’s base case is that equities will continue to edge higher into next year as the Fed moves closer to eventual policy easing once the shutdown is resolved and inflation continues to moderate.---UBS’s optimistic tone may reassure equity investors rattled by recent volatility and policy uncertainty. Its call suggests limited downside for risk assets in the near term, potentially supporting global stock indexes and risk appetite even as yields stay elevated. This article was written by Eamonn Sheridan at investinglive.com.