JPM on the US equity markets, a client note published late Friday

  • Stocks have "plenty of room" to rise further
  • but there are short-term risks (elevated momentum positioning indicates 'overbought' levels)
  • But go higher in the medium to longer term

The four driving forces JPM highlight are:

  1. a still-low overall equity positioning
  2. a rapid improvement in funding markets
  3. the liquidity and interest rate environment has undergone a structural change
  4. steady lockdown relaxation will drive a rapid economic recovery

On point 2:

US equity markets