The stock market is under pressure by higher for longer interest rates

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4 reasons why interest rates higher for longer will keep downward pressure on the stock market, according to JPMorgan

"The bond market has been increasingly pricing-in a more hawkish scenario, but the equity market less so, with relative equity valuation at the high end of the historical range," JPMorgan said in a Monday note."History implies that for current level of real rates the S&P 500 multiple is ~2.5x overvalued."

"The risk-reward for equities is unattractive at current levels, particularly for small-caps that are disproportionately more sensitive to rising cost of capital," JPMorgan said.1. Demand Destruction

 

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