Investors rushed towards equities following the news that Donald Trump had been elected as the next U.S. president. However, such an appetite could be hit by volatility surrounding the President-elect's policies, a UBS analyst told CNBC.
Stocks in infrastructure, mining and metals, banks have benefited from Trump's campaign pledges of spending $1 trillion dollars to boost growth, cutting corporate tax and reducing regulation.
According to Vinay Pande, managing director at UBS Wealth Management, there is "an absolute value in equities" and the markets have realized it.
"The Trump reflection … makes the argument much stronger and this has produced the trigger to release the value and the relative value we see in equities versus bonds," Pande told CNBC on Friday.
Though the value of equities isn't perceived as "that expensive," the uncertainty factor may affect where investors put their money over the coming months.
"I think we are in for a regime of higher volatility, higher volatility of volatility for two reasons," Pande said, noting the markets do not know Trump and need to adjust to a post-Brexit, post-Trump world.
"This is a gentleman that markets aren't familiar with," he said.
"The market has to adjust from a way of thinking that has been correct for the last 20 years to a way of thinking that may not be correct going forward," Pande added.