JPMorgan Chase & Co said Thursday that stocks will face a new threat over the next few weeks as major money managers prepare to unload as much as $150 billion of stocks.
JPMorgan strategist Nikolaos Panigirtzoglou predicted that, over the summer months, investors will dump real-money portfolios — including those of sovereign wealth and pension funds –in favor of bonds in order to meet allocation targets.
As a result of what Panigirtzoglou said might be the biggest rebalancing since the last quarter of 2021, nearly 5% of global stocks could be sold off.
So far this year, he said, equities have outperformed bonds,, meaning portfolio managers must now cut their stocks exposure to meet long-term corporate targets.
