UBS Maps Challenges and Probability Paths

Markets have entered a new world of “lower growth, low inflation along with volatile oil and turbulent equity markets,” notes recent UBS quantitative research.

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In a report out September 21, the firm models various risk management probability paths to consider investment approach in what for some is a challenging market environment but for others represents opportunity.

UBS views risks in the world economy: China, Oil, US dollar

When quantifying the macro risks on global equity markets, the UBS Global Quantitative team creates a road map “that helps investors surf the macro wave” of market environments. As it charts the risks that could bedevil the developed world, all the risks...