The Wall Street market may decline at any moment

JP Morgan’s chief global equity strategist, Lakos Bogos, issued a warning that the US stock market is too crowded.

He added that investors who rely on trading based on market momentum may end up on the wrong side when stocks falter.

Bogus added during an intervention in a webinar on Wednesday that excessive crowding around the best-performing stocks on Wall Street raises the risks of an imminent correction, according to Bloomberg.

He pointed out that this had happened in the past, where one of the large funds would begin to reduce some of its holdings, then other funds would follow, and the process of getting rid of shares would gain greater momentum.

Bogus explained that the markets “expect a lot” of positive events, starting from corporate profits, the US Federal Reserve’s interest rate cut, and the possibility of former US President Donald Trump winning a second term, but he believes that the opportunities for the stock market to rise are limited, other than those related to “Nvidia” company. “.

He continued that when we follow historical events, we find that the rush towards stocks with general demand, such as the Big Seven, is usually followed by a correction movement, and this has happened three times since the global financial crisis.

Bogus justified his estimates by pointing out that Tesla shares have declined by 27 percent, and Apple shares have declined by 10 percent since the beginning of 2024, after they achieved strong performance in the previous year. (Sky News Arabia)