"When the (global) economy is slowing down and financing
costs are rising, all these implicit or explicit carry trades
are pressured to unwind, leading to an end of the cycle. We
believe we are in that stage and remain negative on risky asset
classes."
(Reporting by Marc Jones; Editing by Dhara Ranasinghe)
LONDON, March 15 (Reuters) - JPMorgan's strategists
ratcheted up the investment bank's "underweight" recommendation
on equities on Wednesday and urged switching into cash following
the market rout caused by Silicon Valley Bank's collapse.
In a note titled "There are many carry trades, and they
can't all be bailed out", JPMorgan analysts said: "We maintain a
defensive tilt in our model portfolio, and further increase our
UW (underweight) in equities vs. raising our cash allocation."
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