Investing
JPMorgan Strategists Say Reddit Army Won’t Spur Big Market Drop
- Normand sees a major drawdown as ‘unlikely’ from the episode
- Stocks rallied Monday as some of the day-trader concerns eased
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The battle between retail traders and hedge funds is unlikely to cause a major setback for markets, according to JPMorgan Chase & Co.
Major drawdowns have usually occurred when there’s a worse outlook for growth, as well as signs of overvaluation beyond price-earnings ratios and credit spreads, JPMorgan strategists led by John Normand wrote in a note Friday. Few markets show signs of extraordinary price momentum or excessive investor leverage, he said.