JPMorgan Strategists Say Equities Are Flashing a Bullish Signal
- Reduced demand for hedging equity risk a bullish sign: JPM
- See fair value for S&P 500 in second quarter at 4,400 points
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Stock markets are flashing a bullish signal amid tentative signs that inflation volatility is peaking, according to JPMorgan Chase & Co. strategists.
As fears about hawkish central banks and a potential recession sparked a rout in US stock markets this year, the put to call open interest of S&P 500 options collapsed as demand for hedging subsided, strategists led by Nikolaos Panigirtzoglou wrote in a note on Wednesday.