These Three Popular Trades Might Be Ready to Burst
UBS sounds a warning on health care, energy, and emerging market positions.
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Former Federal Reserve Chair Ben Bernanke once said, "Identifying a bubble in progress is intrinsically difficult." That hasn't stopped people from trying.
UBS Group AG strategists led by Julian Emanuel have taken a look at three popular trades, which they refer to in a new note as potential bubbles, at least in the sense that investors have flocked to them. Those crowded trades include going long on U.S. health care and shorting U.S. energy and emerging markets. The strategists argue that these trades have shown signs of deflating in recent weeks, causing some concern as to whether they may have run their course.