European and Japanese equities are a more attractive option than U.K. and emerging markets stocks, according to the global chief investment officer at UBS Wealth Management.
"We still think that this year equities in the developed markets can be higher by the end of the year," Mark Haefele told CNBC's Squawk Box.
But he noted that market volatility since the start of the year could put that forecast at risk over the next six months.
The European Central Bank (ECB) plans to extend its 60 billion euro-a-month ($64.98 billion) bond-buying program at least through March 2017. That should help to keep euro zone's currency weak, supporting exports, as well as encouraging the purchase of risky assets, such as stocks and corporate bonds.
In its 2016 outlook note, UBS forecast "superior" 8-12 percent earnings growth in Europe over the next 12 months.
That's also driving UBS' preference for European high-yield bonds over U.S. ones.