JPMorgan warns of extreme investor crowding in high-beta stocks, flagging market risk
JPMorgan strategists say markets have seen three waves of extreme crowding in style factors this year.
January saw a rush into quality growth and large-cap AI-linked names.
April brought a shift to low-volatility stocks amid fears of AI overspend and recession risks from tariffs.
Now, crowding has surged into high-beta stocks—both speculative growth and low-value names—reaching the 100th percentile, the most extreme in 30 years.
The move from the 25th to 100th percentile happened in just three months, a pace JPMorgan calls "unsustainable." Short interest has collapsed, leaving investors poorly hedged.
“This crowding reflects growing belief in a Goldilocks scenario—resilient growth, Fed cuts, and tariff fatigue,” the team says. But they warn it signals rising complacency and presents a broader market risk.JPMorgan’s screen of crowded high-beta names includes Palantir (PLTR), Coinbase (COIN), Nvidia (NVDA), Super Micro (SMCI), and Tesla (TSLA).
They advise rotating back into low-volatility stocks, which now offer better risk/reward amid looming August 1 tariff deadlines, poor seasonal trends, and stretched positioning.
InvestingLive (formerly ForexLive.com) tells you what you need to know!
This article was written by Eamonn Sheridan at investinglive.com.Hence then, the article about jpmorgan warns of extreme crowding in high beta stocks sees rising market complacency was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( JPMorgan warns of extreme crowding in high-beta stocks, sees rising market complacency )
Also on site :
- Man accused of placing pipe bombs near GOP and Democratic headquarters in Washington to remain in jail pending trial
- Aura AI Assistant for Unreal Engine Launches: VR Studio Ships Game in Half the Time with New Agent Capabilities
- Hawaiian Island May Soon Lose One of Its Beloved Visitor Stops