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The Great Rotation Into Stock Funds Risks a 2018-Style Collapse

  • JPMorgan’s Panigirtzoglou expects stock inflows to weaken
  • Stock bulls lured by robust 2021 returns are facing bumpy ride

The great rotation on Wall Street into stock funds and out of bonds risks falling apart.

Defying the worst January for the S&P 500 since 2009, investors have sunk $152 billion into equities this year, after a gangbusters 2021 for both stock returns and flows, according to JPMorgan Chase & Co.