JP Morgan Warns of S&P 500 Collapse
Investors beware, one of the world's foremost banks has just gone on the record warning investors of an equity market collapse. JP Morgan thinks that a number of factors will come to undermine stocks. In particular, hikes in US rates coupled with decreased easing from the ECB and BOJ will work to undermine US equity valuations. JP Morgan thinks the coming plunge in stocks will be steep as it is citing the possible emergence of "tail risks", or seemingly unlikely scenarios which could have big negative effects on stocks. Bank of America also weighed in on the possibility of a coming fall, saying that "peak liquidity and peak profits [mean a] big top in autumn".
FINSUM : These are some very high profile warnings and investors would do well to listen to them. Our house view is that if things head south in a big way it will not be just because of central banks, but some political/or geopolitical event that works as a catalyst.
- bank of america
- jp morgan
- S&P 500