Stocks to the moon (and back)!

Monday, 15 January 2024

The Market Ear on still overheated stocks.

A warning sign

JPM says that we are at the end of a large period of HF short covering and that the S&P 500 often experiences a ~5% drawdown over the next month and High SI stocks often fall 10-12%. So far, US High SI stocks have fallen >10%, but the S&P 500 has held up well. So is this time different?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.