JPMorgan Chase investment bank warns that the end of the five-month rally in the US stock market may come unexpectedly for investors. In this regard, it is worth paying attention to the diversification of your assets and risk management in your portfolios. Experts note that the risk of correction is quite possible due to the too rapid growth of the most dynamic stocks. Moreover, the situation may develop unexpectedly. In the past, there have already been cases of sudden corrections due to the actions of large funds, which can lead to a market failure. Despite a successful first quarter, which brought the S&P 500 index an estimated 10% return, JPMorgan Chase warns that many positive factors have already been taken into account in the share price. This applies to both high corporate earnings and expectations regarding the Fed and political events (including the possible return to the political arena of former US President Donald Trump). Historically, after a jump in popular stocks, for example, those included in the «Magnificent Seven», a correction often occurred. This has happened three times since the global financial crisis.
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