Investors too bearish, no selloff in sight, says JPMorgan

Target counters: The JPMorgan headquarters in Paris. Its strategists say the drawdown in smaller companies offers investors attractive entry points for ‘reopening stocks’’, such as travel and hospitality, as well as energy and e-commerce. — Bloomberg

NEW YORK: There’s little reason to fear that the rally that catapulted United States stocks to successive records this year will end soon, according to JPMorgan Chase & Co strategists. In fact, it may get broader.

“Conditions for a large selloff are not in place right now given already low investor positioning, record buybacks, limited systematic amplifiers and positive January seasonals,” the strategists led by Dubravko Lakos-Bujas wrote in a note to clients.