The Street (March 29)
2024/ 03/ 31 by jd in Global News
The Wall Street consensus “sees further gains over the coming months, fueled by solid corporate earnings and a better-than-expected economy,” but scenarios from some analysts include “a notable correction.” JP Morgan’s chief global equity strategist, Dubravko Lakos-Bujas, believes that “both the market’s reliance on AI-powered tech stocks… and Fed rate-cut projections put it at risk of a near-term correction.” He warns it could come completely “out of the blue,” such as a flash crash when “one big fund starts de-levering some positions, a second fund hears that and tries to reposition, the third fund basically gets caught off guard, and the next thing you know, we start having a bigger and bigger momentum unwind.”
