Global Stocks Could Soar 47% From Current Levels

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  1. snerd

    snerd Horselover Fat

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    Thursday's steep market sell-off helped "rejuventate" the bull market in stocks - and in the medium to long term, global equities could rise 47% from current levels, according to a Friday note from JPMorgan.

    The bank pinned most of the blame of Thursday's near 2,000 point Dow sell-off on this week's FOMC meeting, with no new policy actions announced by the Fed. Investors were likely expecting an increased pace of quantitative easing, because financial conditions could tighten without further stimulus from the Fed, according to the bank.

    But JPMorgan thinks the recent sell-off was healthy and helped remove some of the froth that was building in the markets. The bank is likely referencing the surge in retail trading and spiking interest in risky stocks like Hertz and Nikola Motor, among others.

    "With some of these previous pockets of over extension clearing, we believe that the equity positioning backdrop will re-assert itself rejuvenating the equity bull market which in our mind is still underpinned by four medium to longer term drivers which are still in place," JPMorgan said........

    https://markets.businessinsider.com...-percent-gain-jpmorgan-says-2020-6-1029304936
     
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