The latest market review from JPMorgan specialists notes the fall in US indices, which occurred on September 20th. The bank’s analysts attribute the reason for the collapse of quotations to technical factors and the negative reaction of investors to risks. At the same time, representatives of JPMorgan consider the current situation a good moment for investment.
The factors that provoked the market collapse include low liquidity and option hedging. During the day, quotes fell in most sectors. Of the companies that are included in the S&P 500 index, only 5 have recorded profits over 1%.
Despite such a situation on the market, JPMorgan experts are optimistic. Thus, the bank increased the projected growth of the S&P 500 by 100 points (up to 4,700). Next year, this figure, according to analysts, may exceed the mark of 5,000.