UBS Derivatives Team Explains "Where The Asset Bubbles Are"

Asset bubbles are unique, the UBS derivatives research team observes. This is particularly true when the burst.

Derivatives players are sometimes known for watching the macabre with a particular fascination. But don’t confuse this for a morbid pastime as much as it is considering risk management probability paths that might smooth out otherwise volatile investing performance. It is here that the February 23 U.S. Equity and Derivatives Strategy report provides a "toolkit" for measuring “the barometric pressure of developing investment bubbles” along with a prescription to aid the whip-sawed patient.

Identifying asset bubbles can be difficult

Despite the fact the U.S. Federal Reserve, the world’s most influential central bank, has...