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The five P's driving volatility according to UBS

September 23, 2024 7:00 PM EDT

According to UBS analysts, equity volatility is currently being driven by five key factors they refer to as the "Five P's": Policy, Politics, Probability, Profitability, and Positioning.

Each of these elements plays a critical role in shaping market movements, and understanding their influence is essential for predicting future volatility, the investment bank said in a note Monday.

Policy: According to UBS, one of the major drivers has been the Federal Reserve's monetary policy. While the debate over future rate cutswhether... More