JPMorgan: Every Investor Class Is Now All-In Stocks

A funny thing happened as the so-called experts were looking for signs of retail euphoria (and repeatedly were unable to find it): everyone got all-in equities... and not just retail investors and US households, but mutual funds, hedge funds, pensions, systematic, and sovereign wealth funds.

As JPMorgan calculated when looking at the equity positioning of the main types of investors, "allocations are near historical highs, not leaving much room for further increases." How historic?

Starting with retail investors one can notice that margin debt (measured as percentage of market capitalization) is at its highest point ever, which includes the 2000 tech bubble episode. The percentage of US household wealth in equities is in its 94th percentile and above its 2007 peak, but slightly below 2000 levels. Sovereign wealth funds and US mutual funds are also near record levels. Pension Fund allocations appear to be in the 88% percentile, although there is some uncertainty around this number in adjusting for private asset and HF holdings. Global Hedge Funds’ allocation (as measured by equity beta) are also near record highs, and Equity Hedge funds’ allocation in their 93rd percentile (since 2005).

 

Why does this matte? Because with everyone already long stocks, there is no marginal buyer left, or as JPM puts it, "there is only so much the market can rally if equity investors are already near maximal allocations."

And with increasingly more traders and momentum-chasers shifting away from the manipulated arena of stock trading, and on to cryptocurrencies, one can understand why both commercial and central banks - in addition to Jamie Dimon of course, who is "richer than you äre" only as long as you trade those instruments in which he makes markets - hate the best performing asset class of 2017.

Comments

All Risk No Reward Clock Crasher Wed, 11/22/2017 - 15:59 Permalink

Cash is not printed, it is lent.

The system is rigged to indebt you, and then it is rigged to call in those inextinguishable debts.

You have failed to learn the lesson that Henry Ford tried to teach you...

"The one aim of these [debt-money] financiers is WORLD CONTROL THROUGH INEXTINGUISHABLE DEBT.

We are in the "create debt" phase.

IT.

WILL.

NOT.

LAST.

FOREVER.

WOE TO THE MUPPETS WHO BELIEVE SO...

Resources:

"Power corrupts. Absolute power corrupts absolutely."
~Lord Acton

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
~Lord Acton

“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”
~Napoleon Bonaparte

"Let the American people go into their debt-funding schemes and banking systems, and from that hour their boasted independence will be a mere phantom."
~William Pitt, (referring to the inauguration of the first National Bank in the United States under Alexander Hamilton).

How To Be a Crook
https://www.youtube.com/watch?v=2oHbwdNcHbc

Poverty - Debt Is Not a Choice
https://www.youtube.com/watch?v=t7BTTB4tiEU

Renaissance 2.0 The Rise of [Debt-Money Monopolist] Financial Empire
https://www.youtube.com/watch?v=96c2wXcNA7A

Debunking Money
https://www.youtube.com/watch?v=5iBSBVew-3Y

Krugman (and each MIT economist professor - THEY KNOW AND THEY OCCULT!) is a Goebbelsian propagandist as he covers the crimes of wolves with his fake sheep suit and lisp.

Krugman to Lietaer: "Never touch the money system!"
https://www.youtube.com/watch?v=Q6nL9elK0EY

"The brave man inattentive to his duty, is worth little more to his country, than the coward who deserts her in the hour of danger."
~Andnrew Jackson

In reply to by Clock Crasher

All Risk No Reward ah-ooog-ah Wed, 11/22/2017 - 16:03 Permalink

There is an exit, it is just that it is not, shall we say, a very palatable one.

But the real issue is that debt-money systems are balance sheet based...

The debt-money proceeds equal the debt-money obligations.

Now that the Debt-Money Sith Lords have trillions upon trillions horded in their Mega-Corporate Empire (both onshore and offshore), THAT MEANS THE HELOT PLEB CLASS HAS TRILLIONS AND TRILLIONS IN INEXTINGUISHABLE DEBTS.

Collateral is a B*, people, WHEN THE DEBTS ARE INEXTINGUISHABLE.

"Poof...and then its GONE!"

And It's Gone...
https://www.youtube.com/watch?v=TGwZVGKG30s

In reply to by ah-ooog-ah

TacoNasty Wed, 11/22/2017 - 16:21 Permalink

Damn Tyler, you must be getting old. You forgot the most important "market" participant of all - Foreign Central Banks!!! They can never be "all in" or "fully allocated" because they can alway just print more money to buy stocks.There's probably another 70% of upside in the NASDAQ over the next 12 months just due to the investment plans of the Swiss National Bank.

ds Wed, 11/22/2017 - 21:37 Permalink

When all the preys are in and leveraged to the hilt, that's when the trap door shut. Muppets still drinking kool-aids and seduced by their financial advisors, etc. Note that the 1% are much smarter.