Recession worries haven’t been the main driver of market sell-off: JPMorgan
Circle of Circle Quaral’s alternative investments say inflation is the carbon dioxide of the economy.
The analysis by JPMorgan assumes that the latest sales of the US stock exchange did not run on concerns The economy falls downA number
Mounting uncertainty due to the presidency Donald Trump Economic tariff plans, US trade relations and labor market continue to tighten US budgets.
“US growth problems are often mentioned in the conversation of our customers due to the uncertainty of tariffs,” he wrote led by Nicolaos Pangrensoglu last week. “Indeed, the likelihood of the United States, which is included in the asset classes, continued to crawl over the past week, as risk markets have losses.”
However, the review of JPMorgan analysts suggested that correction may be mainly caused by fencing properties that use algorithmic strategies to regulate positions, not concern.
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Jpmorgan analysts suggest that market sales were not mainly due to the fear of falling. (Photo by Ryan Rahman / Pacific Press / Lightrocket Via Getty Images / Getty Images)
“Recently, the US stock market is conditioned by the adjustments of the position of the share of the share quant-stone Fund Fund and is more conditioned by fundamental or discretionary managers, which are re-evaluating the risks of the US decline,” they wrote.
The report states that credit markets send a fewer recumbent signal than stocks and bond benchmark.
As of March 11 S & P 500 Postcode: 33% suggested the probability of a decline, while the 5-year treasury entailed 46% chance of 45%, and Russell 2000 – 52% chance. In contrast, high-quality U.S. Credit Markets have been declining a decline in the United States, only 9% probability.
The JP Morgan report mentioned that credit markets send fewer recumbent signals than other parts of the market. (Michael M. Santiago / Getty Images / Getty Images)
“If one will increase the greater weight in credit markets and rejects the risk of the United States, what explains the correction of our facts and the correction of NASDAQ. Retail investors: It is unlikely to be culprits. “Analysts have written.
“The most likely culprits in our minds are joint stock funds, particularly two categories. The share of the stock of the Hunting TMT features, “said analysts. They meant that more traditional fence measures focused on long-term or short share positions, less played in the afterlook, taking into account their share beta, growing in February.
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“If the above assessment is true, and the funds of equity have played more role than their discretionary partners, then the correction of the US market of the United States would be more conditioned by the basic or discretionary bodies.
“And if US equity ETFS Continue to see mainly inflows, as they have a good opportunity so far, most of the US currency currently is behind us, “they added.
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