Asset allocation strategists from UBS are saying that they are increasing their 'overweight' stance when it comes to equities.

"We think markets have over-reacted; hence we are adjusting our portfolio. We believe the sell-off in Treasuries is over-done and the equity correction was not warranted," strategists from UBS write in a note.

This announce came when the correction in stock markets were termed as overdone. This was spurred by comments from US Federal Reserve concerning the timing of a scale back in the monetary stimulus programme.

Fed Chairman Ben Bernanke commented on June 19 that the bank was likely to start a reduction in the number of bonds that it buys part of the quantitative easing programme which is set for the later of this year

UBS strategists are saying that they have increased their US stock exposure. They also commented that they are making "a more pronounced allocation into Europe and UK. As a result the geographical split is more evenly split between the three zones."