JPMorgan Sees $100 Billion Quant Buying Should Rally Last
- S&P 500's break above 2,100 could induce trend-following funds
- Most quant funds seen having increased exposure to equities
Why 2100 Is an Important Number for S&P 500
This article is for subscribers only.
The nine-week rally that has restored $3 trillion to U.S. equity values could potentially spur further demand from a group of quantitative traders who make buy or sell decisions based on price trends, according to JPMorgan Chase & Co.
Their purchases could reach as much as $100 billion should the Standard & Poor’s 500 Index rise and stay above 2,100, strategists including Dubravko Lakos-Bujas and Marko Kolanovic estimated in a note published Tuesday. The benchmark gauge just exceeded that threshold for the first time since December, adding 0.3 percent to 2,100.80 at 4 p.m. in New York.