JP Morgan: US stock mkt concentration highest 60 years. Watch AI frenzy for selloff sign.
<p>A note Monday from JPMorgan Chief Global Markets Strategist Marko Kolanovic's analyst team.</p><p>In summary:</p><ul><li>US stock market is seeing its dependence on a handful of megacap names increase at the fastest pace in 60 years, surpassing what was seen during the dot-com bubble, which peaked in March 2000</li><li>additionally, crowding in growth stocks included in the S&P 500 has reached the 97th percentile on a historical basis, the highest since the dot-com bubble<ul><li>a selloff catalyst might include an event such as:</li><li>a deep recession</li></ul></li><li>a sudden resurgence of inflationary pressures</li><li>
"The peak in this concentration episode should coincide with a diminishing interest in [the generative AI/large-language model] theme from investors or as more rationalization is applied post the initial AI frenzy"</li></ul>
This article was written by Eamonn Sheridan at www.forexlive.com.
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