JP Morgan Chase: US stocks still have significant upside, bubble fears are difficult to stop bulls

JPMorgan believes the strong rally in US stocks will continue, even as record highs in the S & P 500 have sparked concerns about overvaluation and the re-emergence of a "meme" bubble. Andrew Tyler, head of global market intelligence at the bank, noted on Thursday that while the overall market has not yet reached a consensus to be bullish, from the perspective of client exchanges, even those who were originally pessimistic are beginning to capitulate. Recent progress on trade deals, better economic data and a pick-up in merger and acquisition activity have all contributed to strong momentum for stocks. From a technical standpoint, this rally has also benefited from the combination of momentum reversals and'meme fever ', which makes short-selling operations more expensive and risky. If macroeconomic data continue to be solid and more trade deals are reached, the market may even "take a significant step upward". Scott Rubner, head of equity and derivatives strategy at Citadel Securities, also believes that US stocks will continue to rise until September, advising investors to "seize the upside first and then build a hedge in the autumn".