This year, the S & P 500 has declined by more than 21%. But it has also seen multiple weeks where stocks have risen by more than 5% despite slower economic growth expectations. Such bear market rallies, according to Madison Faller, global investment strategist at JPMorgan Private Bank, were well suited for investors to sell stocks ahead of a more significant market fall.
Last week, Bank of America also advised clients not to trust the recent market rally as its research pointed toward further declines in the stock market. Hedge fund manager Dan Niles also reiterated his belief that the S & P 500 will bottom at 3,000 points. However, he said the stocks will rise this month until Oct. 25, when stock analysts will downgrade their estimates after mega-cap tech companies report third-quarter results.
Why JP Morgan holding stocks ?