Don't use derivatives as a crystal ball

Ljubic, Philip

Don't use derivatives as a crystal ball - 2012 - Property Week 78(08) 24 February 2012, 40(1) .

Suggests that property derivatives are not very effective as a forecasting tool. There is a big discrepancy between calendar-year derivative prices at the start of a year and what actually occurred based on the IPD UK All Property Total Return at the end of the year. To understand derivative prices correctly you need to understand the technical drivers of prices.


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