Overconcentration in U.S. stock market sees fastest rise in 60 years, JPMorgan warns

The U.S. stock market is seeing its dependence on a handful of megacap names increase at the fastest pace in 60 years, which could spell trouble ahead, according to a team of JPMorgan Chase & Co. equity analysts.

In the past, periods where the market became heavily slanted toward an elite group of ultra-valuable stocks have often ended badly, according to a Monday report from a team led by JPMorgan Chief Global Markets Strategist Marko Kolanovic. The team found that over the past six months, the S&P 500 has seen that divergence widen in favor of the biggest companies at the fastest pace since the days of the “Nifty 50,” a group of large-cap stocks that were heavily favored by investors during the 1960s.

In short, a selloff is likely coming, but exactly when is more difficult to say. Whatever the catalyst might be — the team listed off a few possibilities, including a deep recession or a sudden resurgence of inflationary pressures — it will likely mark the end of the artificial-intelligence frenzy that has helped drive this year’s sharp dispersion in equity performance.

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

‘AI-Driven Bubble’ May Burst And Drag Down Stock Market, JPMorgan SaysFallout from elevated interest rates, an “erosion” of personal savings and a “deeply troubling” geopolitical situation will lead to broad market declines, according to strategists at the world’s largest bank.
Fonte: Forbes - 🏆 394. / 53 Consulte Mais informação »

JPMorgan’s top strategist stays bearish stocks, but thinks this asset class may catch upJPMorgan chief global equity strategist Marko Kolanovic says commodities stand out as 'under-valued [and] under-owned.'
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »