Making Financial Headlines · Page 2
JPMorgan Says the Tailspin May Be Running Out of Passengers
· New York time
JPMorgan strategists say the stock market's recent tailspin might have run its course, pointing to hedge fund positioning that has lightened considerably since a September peak, MarketWatch reported. Their assessment is that downside for stocks is now limited. It is a market argument based on positioning, not a signed agreement requiring share prices to behave. Positioning helps describe how much exposure investors already carry. If funds have reduced that exposure, the conditions surrounding further selling may differ from those at the earlier peak. That does not make positioning a complete account of corporate earnings, economic conditions or the next unexpected development. The market has never agreed to stop producing surprises simply because one chart looks less crowded. The useful distinction is between a strategist finding less downside and declaring that risk has retired permanently to a waterfront property. JPMorgan's view belongs to the first category. Investors still have to assess the businesses and prices in front of them. Hedge funds have apparently made more room in the elevator; that may improve the ride, but it does not establish whether the next button pressed will be up. Wall Street remains remarkably willing to charge admission for that uncertainty.
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