JP Morgan with 3 reasons the US S&P is going higher
A note from earlier in the week via JPM on US equities, saying to stay bullish on stocks over the short to medium term.
1. Positioning remains light around macro and systematic investors.
- seasonality over summer should help the volatility spike continue to fade, which could push investors to further add to stock exposure
2. Monetary and fiscal policy is supportive .
- liquidity has recovered meaningfully from the March lows
3. Rising coronavirus incidence is mainly impacting younger populations
- this demographic has drastically lower mortality rates (compared with older people) and likely reflects higher testing rates, recent protests, backlogs of hospital visits, and increased economic activity