JPMorgan Lists Six “Red Flags” Why It Is Starting To Sell Stocks

Last week, Bank of America presented 4 reasons why it finally threw in the towel on its long-held bullish small-cap trade reco, among which valuations, growth and confidence, credit and volatility. Today, JPMorgan’s equity strategist Mislav Matejka similarly called for a near-term top in the market, saying key positive catalysts for equities are over for now, and recommended investors use any further near-term strength as opportunity to cut exposure to asset class.

Specifically, the JPM equity team notes that while “the big picture supports for stocks remain in place” the banks warns that “the near-term risk-reward might be getting less exciting. Some of the positive catalysts we have been looking for, such as a robust earnings season and the easing in political tail risks, have delivered and are now behind us.”

At the same time, JPM warns that the six red flags have emerged for future risk upside….

Source: JPMorgan Lists Six “Red Flags” Why It Is Starting To Sell Stocks | Zero Hedge

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