In its latest research piece, JP Morgan highlights the importance of the monthly and quarterly position rebalancing to suggest bright spot for global equities during the next week. Key quotes Equities have underperformed bonds month-to-date (but outperformed quarter-to-date) (by -5%). A large majority of these portfolios rebalance on a monthly rather than quarterly frequency. Historically, the monthly rebalance effect is over 5x stronger than the quarterly rebalance effect. Thus, the equity buying by monthly rebalancing portfolios (due to equity underperformance MTD) much more than fully offsets the selling by quarterly rebalancing portfolios, meaning these portfolios are expected to be net buyers of equities into month/quarter-end. We would expect rebalances by these fixed weight asset allocation portfolios to provide a tailwind to equities next week. Read: Wall Street Close: Stocks firm up led by Amazon.com’s Bernstein upgrade FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next UK Chancellor Sunak weighs up German-style wage subsidies to replace furlough scheme – The Guardian FX Street 1 year In its latest research piece, JP Morgan highlights the importance of the monthly and quarterly position rebalancing to suggest bright spot for global equities during the next week. Key quotes Equities have underperformed bonds month-to-date (but outperformed quarter-to-date) (by -5%). A large majority of these portfolios rebalance on a monthly rather than quarterly frequency. Historically, the monthly rebalance effect is over 5x stronger than the quarterly rebalance effect. Thus, the equity buying by monthly rebalancing portfolios (due to equity underperformance MTD) much more than fully offsets the selling by quarterly rebalancing portfolios, meaning these portfolios are expected to be net buyers… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
