(Bloomberg) — It’s the talk of the stock market: What will be the sign that the five-month rally in US equities is coming to an end. But if you ask JPMorgan Chase Co.’s Dubravko Lakos-Bujas, investors may not see it coming when it hits.
Most Read from Bloomberg
The Wall Street giant’s chief global equity strategist warned clients on Wednesday that they could be “stuck on the wrong side” of the momentum trade when it eventually falters, and he encouraged them to consider diversifying their holdings and thinking about risk management in their portfolios. He also reiterated his warning that excessive crowding in the market’s best-performing stocks raises the risk of an imminent correction.
“It just might come one day out of the blue. This has happened in the past, we’ve had flash crashes,” Lakos-Bujos said in a webinar. “One big fund starts de-levering some positions, a second fund hears that and tries to re-position,…
