JPMorgan lists 6 reasons why they're bullish on stocks right now | Markets Insider

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JPMorgan lists 6 reasons why they're bullish on stocks right now

is bullish on stocks right now, and listed its six reasons why in a note published Tuesday afternoon.

The bank added that so far, the US has experienced $2.4 trillion in cash expansion, which suggests that"we are only at the beginning of this process, with less than a fifth of the projected global cash injection having taken place so far."In other words: TINA, aka, There Is No Alternative. "To be conservative for equities we incorporate sustained divided cuts as implied by 2022 dividend futures and a sustained 25% decline in buybacks. Even after these conservative adjustments, we find that global equities offer higher than 5% yield, which compares to 1% for global bonds and close to 0% for cash," the bank said.

Rebalancing portfolios occurs when investors who are overweight bonds in their portfolio due to market moves will sell bonds and buy equities to get their portfolio back to its target allocation. "Markets are still pricing in weak economic recovery as evidenced by still depressed dividend futures prices in equities and high credit spreads in HG and HY ," JPMorgan said.

 

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