5 votes

JPMorgan’s math shows why US stocks can keep rallying

2 comments

  1. [2]
    skybrian
    Link
    From the article: On the other hand:

    From the article:

    Giant piles of cash sloshing around the financial system means there’s substantial ammunition yet to push risk assets higher. JPMorgan Chase & Co., meanwhile, sees potential for billions to flow into equities at the expense of bonds to rebalance portfolios. Money-market funds have lured $1.2 trillion this year, while fund managers with $591 billion overall are holding cash at levels rarely seen in history, according to Bank of America Corp.

    On the other hand:

    Speculators have built up the largest net short position on S&P 500 futures since late 2015, according to regulatory data. Short interest in the world’s largest exchange-traded fund -- which tracks the U.S. stock benchmark -- is also still hovering close to its peak in March, according to Markit data.

    2 votes
    1. MonkeyPants
      Link Parent
      This can also drive a rally.

      On the other hand:

      Speculators have built up the largest net short position on S&P 500 futures since late 2015

      This can also drive a rally.

      4 votes