An excerpt from JP Morgan on the US stock market. They’ve been watching the drop for quite a while now, today is no different: Damn, I was thinking Morgan Stanley… thanks to Basil in the comments for the correction.

JP Morgan:

  • liquidity stay terrible
  • there is no real demand for anything
  • the pipes and plumbing for the market will only get worse once june rolls around… few are willing to walk past
  • Once we got past 4000, the debate became whether you should sell 4100, 4200, 4300 or 4400. It’s easy to say things look terrible, but whether it’s a straight line or a wavy line, we still think the risk is down.

sp500 May 20, 2022

JPM refers to the regular summer (northern) doldrums in June.