JPMorgan Says $200 Billion May Flow Out of Stocks This Quarter
- Bank says institutions are poised to rebalance portfolios
- Strategists say a drop in shares would be buying opportunity
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Pension and sovereign wealth funds are set to offload about $200 billion of equities as they rebalance their portfolios, posing a risk for global shares, according to JPMorgan Chase & Co.
This would be the most negative quarterly adjustment since the pandemic hit, strategists led by Nikolaos Panigirtzoglou said Tuesday. The overall figure stems from calculations spanning U.S. defined-benefit pension portfolios, Japan’s Government Pension Investment Fund and Norway’s oil fund.