UBS Says Monday's Market Sell-Off Has Evidence Of A Self-Reinforcing Correction Overpowering Fundamentals And Expected Continuation Of Central Bank Support

UBS says there is a battle between those who are deleveraging versus those who respectable economic fundamentals. Heavy USD selling came from crowded trades rushing to the exit. UBS is making clear to clients that it will choose to wait for the selling to run its course while maintaining a lookout for confirmation originating from positive economic data. UBS will always wait and monitor any potential decline in fundamental valuations stemming from the current market turmoil.