Underweight stocks now, says JPMorgan, because there's a risk-free alternative paying 5%

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

JPMorgan wants to know why you are still holding U.S. stocks.

The new quarter kicked off with a fresh shock for investors after several major oil producers decided to cut more than 1 million barrels of oil per day from circulation starting next month.

Among the extra wary out there is JPMorgan, who in our call of the day says the risk of holding stocks, particularly in the U.S. where they advise an underweight, is no longer worth it. The strategists don’t think the early-year activity upswing, fueled by Europe’s falling natural-gas prices and China’s reopening, will continue feeding gains.

Also there’s a sentiment issue, as they say from a very downbeat view six months ago, “investors are now net long the market, and the sentiment is near complacent.” The buzz Major oil companies — Exxon Mobil XOM , Chevron CVX , ConocoPhilips COP , BP BP and Shell SHEL — are climbing after those surprise production cuts from several members of the Organization of the Petroleum Exporting Countries and allies. The trigger for that was reportedly Saudi Arabia getting irked after a U.S. energy official ruled out replenishing the Strategic Petroleum Reserve last month.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

What is JPMorgan's risk-free 5% yielding alternative to stocks?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How stock trader made 2,700% returns trading small-cap stocksA stock trader who's returned 2,700% since late-2020 by betting on risky small-caps shares 7 criteria he uses to pick stocks— and explains how he used trading to survive after fleeing Venezuela edu_trades Sweet! Way to Go Eduardo edu_trades edu_trades Muchas felicidades!!!
Source: BusinessInsider - 🏆 729. / 51 Read more »