JPMorgan Warns Low Short Interest Could Expose Equities to Sharp Reversal
TL;DR
JPMorgan analysts predict a $50 billion outflow from US equities due to quarter-end rebalancing by institutional investors, including defined benefit pension funds, balanced mutual funds, and sovereign wealth funds. This could reverse the recent support provided by declining short interest in SPY and QQQ ETFs.
- JPMorgan estimates equities will see a $50B hit due to quarter-end rebalancing By Investing.com Investing.com
- The bull market has crushed the shorts. That leaves stocks more vulnerable to bad news, says JPMorgan. MarketWatch
- JPM: Record low short interest in SPY, QQQ may expose US equities to vulnerability By Investing.com Investing.com
- Vanishing short-sellers have helped push stocks to record highs. But beware a sharp negative reversal, JPMorgan says. Yahoo Finance
- JP Morgan says covering of shorts, less short selling, helpful in fueling higher equities ForexLive
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