The bank informed investors to observe signals that the recent increase in the purchase of actions by retailers is losing momentum, which could limit a greater rise for US actions.
The bank JP Morgan reported in a note that observes signs that The recent increase in the purchase of actions by retailers is losing momentumsince retail investors could be losing impulse after a strong rebound, which could harm the performance of the shares.
“After two strong months, the retail impulse seems to have decelerated in May”JP Morgan analysts wrote, referring to the flow of capital to shares, including leverage and inverse ETF. The firm pointed out that the previous rebound was “led by ETF of leverage variable income”, since retail investors adopted a “Mentality to buy in the falls”.
“A deceleration of retail impulse, higher exhibitions to shares by Hedge Funds focused on variable income, coverage of short positions practically completed by Hedge Funds Macro, and The continuous lack of purchases by foreign investors, together they imply a more limited rise potential for US actions“JP Morgan warned about the current situation.
In addition to capital flows, for this bank, others, investors try to cover their exchange exposure. “Increasing dollar coverage ratios is not simple”analysts indicated, explaining that while investors in shares can see exchange risk as a diversifier, Investors in bonds face “high” coverage costs.
Devaluation trade: what expectations are there
The firm also mentioned that the enthusiasm for the call “Devaluation trade” “That includes Gold and Bitcoin,” it’s stagnating.
“After increasing considerably in the fourth quarter of 2024, the general devaluation trade stagnated this year and became more a zero sum game between Gold and Bitcoin.”
Together, JPMorgan sees a “flow panorama and positioning of less favorable shares” for summer.
Source: Ambito
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