Whereas stock-market strategists at Financial institution of America and Morgan Stanley develop more and more bearish, JPMorgan’s equity-research division has churned up yet one more bullish notice for the financial institution’s purchasers, advising them in regards to the potential for large month- and quarter-end rebalancing flows that would set off a sustained rebound in shares, placing much more distance between the U.S. benchmarks and the bear-market territory with which the S&P 500 index was flirting late final week.
The crew of JP Morgan fairness quants, led by Nikolaos Panigirtzoglou, advised the financial institution’s purchasers that doubtlessly greater than $250 billion might move into shares by the tip of June as American mutual funds and pension funds, together with overseas pensions and sovereign wealth funds, “rebalance” by shopping for shares and promoting bonds.
Full article: https://www.marketwatch.com/story/250-billion-of-rebalancing-inflows-could-rescue-stocks-by-the-end-of-june-jp-morgan-says-11653395405
In accordance with JPMorgan $JPM, greater than $250 billion might doubtlessly move into shares by the tip of June. Mutual funds, pension funds & sovereign-wealth funds will probably “rebalance” by shopping for shares and promoting bonds. Do you suppose this influx may trigger a rally in shares?