<h2>Stocks Sit at Historically Expensive Levels But Not in the Way that Matters Most</h2>
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<p>JPMorgan said Wednesday. Price-earnings ratios remain elevated, but prices relative to bonds are the signals to watch for future market moves, Marko Kolanovic, head of macro quantitative and derivatives research at the bank, wrote in a note to clients. <a href="https://www.awin1.com/awclick.php?gid=330772&mid=12195&awinaffid=737269&linkid=2214560&clickref=" target="_blank" rel="noopener noreferrer">Stocks</a> are currently "quite cheap" by that measure, and the dislocation is directly tied to a decline in bond yields, he added.
Central banks’ initial economic relief efforts — rate cuts and asset purchases — prompted investors to follow close behind and flood the bond market with cash. But just as capital flowed out of stocks through the start of the coronavirus pandemic, it’ll likely rush back in the summer, JPMorgan said. Read more…………..
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Joyce Chang, chair of global research at JPMorgan, discusses the outlook for the U.S. economy and fiscal and monetary measures to offset the fallout from the coronavirus pandemic. She speaks on “Bloomberg Surveillance.”
