JPMorgan says stocks will climb nearly 50% as investors flee low returns in bonds and cash

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New for subscribers: JPMorgan says stocks will climb nearly 50% as investors flee low returns in bonds and cash Check out CNBCPro for a free trial.

A man wearing a protective mask sits on top of the Charging Bull sculpture near Wall St. amid the coronavirus pandemic on April 19, 2020 in New York City, United States.Investors are still largely sitting on the sidelines after the market's epic rebound, but the low returns in bonds and cash have left them with no alternatives but to embrace risk assets again, according to JPMorgan. The firm sees a nearly 50% rise in stocks over the long term due to this shift.

"Our most holistic of our equity position metrics, which compares the size of the equity universe to the size of the bond and cash universe, implies 47% upside for equities from here assuming the implied equity allocation of non-bank investors globally rises from 40% currently to the post Lehman period high of 49%," Nikolaos Panigirtzoglou, a managing director at JPMorgan, said in a note on Friday.

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Pro

Pro realDonaldTrump y did tell every1 Amazon stock new price 3000 - $3300.00 then huge blocks of 1/4 million each traded all day for 2 days sinking thw stock. Seems we have billionaire insiders who want to steal from Citizens using fake media. We need fair high save savings

Pro corporationS own most of amazon stock that trade nonstop with 100 block cubes of 1/4 mill seem they want to control price. Amazon was upgraded this week to 3000 I also saw a 3300 yet the big block 1/4 mill trades all day have sent the stock down . I heard u blamed millennials

Pro Until the equity risk premium turns negative too.

Pro

Pro So, some intern at $JPM just took the long bond rate and equated that to the dividend yield and determined this? Just a guess based on an estimate. YeahThatsSound

Pro Thats a bit (huge) of a stretch.

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