JPMorgan: $200 Billion May Flow Out of Stocks This Quarter
LONDON (Bloomberg) - 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. The overall figure stems from calculations spanning U.S. defined-benefit pension portfolios, Japan’s Government Pension Investment Fund and Norway’s oil fund.
"This negative rebalancing flow becomes even more problematic given this month’s sharp decline in equity market depth,” they wrote in a note.
This would be the most negative quarterly adjustment since the pandemic hit, strategists led by Nikolaos Panigirtzoglou said. The overall figure stems from calculations spanning U.S. defined-benefit pension portfolios, Japan’s Government Pension Investment Fund and Norway’s oil fund.
"This negative rebalancing flow becomes even more problematic given this month’s sharp decline in equity market depth,” they wrote in a note.