Next stock market crash: Bubble in tech, value to burst, JPMorgan says - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 51%

United States News News

United States United States Latest News,United States United States Headlines

'This bubble will likely collapse': JPMorgan sounds the alarm on a hugely popular trade that's twice as overstretched as it was before the dot-com crash

, JPMorgan's global head of macro, quantitative, and derivatives strategy, who expected that the shift to value would persist into Q1 2020.

He had identified a gulf between value's lag on one hand, and the outperformance of factors including momentum — which lifted many fast-growing technology stocks — and low volatility. Kolanovic even called the expected convergence between these factors a "But the gap has only gotten wider since last July and is now twice as large as it was during the dot-com boom. Value is still out of favor, while low-volatility and momentum-driven technology stocks are all the rage.

"We caution investors that this bubble will likely collapse, i.e. this time is not 'different', with valuations reverting closer to 2010-2020 average," Kolanovic said in a recent note to clients. Kolanovic went further than declaring an "equity factor bubble" to explain what is behind its expansion.

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:

 /  🏆 729. in US
 

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

Nice paywall. I won’t subscribe to anything now that anonymous micro payments are possible using crypto currency. Get caught up on technology BI and open the door to a whole new readership.

CLICK BAIT POST

In the time that I've been 'in the market' as an every day American investor, I have seen bubbles build & pop. Lost a few 100g's in the tech🎈& learned the hard way. Bubbles will build again! Bubbles will blow again! Lil ole can tell u, the pin is about to meet the rubber. BOOM!

United States United States Latest News, United States United States Headlines

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

Next stock market crash: Why Fed is powerless to stop looming 67% loss - Business InsiderA renowned market bear says investors should be 'braced for zero or negative total returns' over the next 10-12 years — and reiterates his call for a 67% stock meltdown Wow. This looks grim. Here's how to tell a bear market is coming bearmarket bullmarket correction Crash stockmarket equitymarket
Source: BusinessInsider - 🏆 729. / 51 Read more »

Growth hits new high against value, and three stocks could ride next leg higherGrowth stocks just hit an all-time high against value. These two traders pick out their favorite names to ride the next surge. TradingNation the only thing growing is the fake economy, which is the stock market ! TradingNation You guys think it’s a good thing the entire global equity markets rely and are completely dependent on 4 stocks? $AAPL, $AMZN, $GOOGL, $MSFT
Source: CNBC - 🏆 12. / 72 Read more »