According to the latest reports, it seems that JPMorgan Chase said that a massive sell-off stock is around the corner. Check out the latest reports about this below.
JPMorgan Chase addresses massive sell-off stocks
According to JPMorgan Chase analyst, Nikolaos Panigirtzoglou, the stock market could experience a significant outflow of capital amounting to billions of dollars due to the recent surge in prices since March.
Institutional investors are reportedly planning to rebalance their portfolios to meet their allocation targets.
These investors typically invest in various assets such as bonds, stocks, and real estate to diversify their holdings, and they adhere to strict mandates on asset allocation to limit their exposure to a particular asset class.
According to Panigirtzoglou, the recent surge in the stock market has caused institutions’ portfolios to exceed their thresholds, requiring them to move up to $150 billion in positions to invest in the contracting bond market.
“The last time we had such a gap with equities and bonds in opposite directions was in the fourth quarter of 2021.
This rebalancing flow could create around a 3% to 5% correction in equities.”
Bitcoin and stocks in the news
According to blockchain analytics platform Santiment, Bitcoin (BTC) has remained relatively stable despite the recent rebound of the stock market.
According to Santiment, the stock market has reached its highest point in approximately 10 months due to the resolution of the US government’s debt ceiling problem.
Although Bitcoin has not been performing as strongly as the S&P 500 recently, the analytics firm suggests that BTC may catch up soon.
“The US House has passed a key debt ceiling deal, launching the S&P 500 to its highest price since August. Altcoins like LTC, LEO, and FGC have jumped today. With crypto lagging behind equities, there could be some BTC catch-up time coming soon.”
According to Santiment, XRP – the sixth-largest crypto by market cap – is currently experiencing a surge in address activity and increased levels of optimism among the crowd.
Check out our previous article in order to learn more details.
