JPMorgan Says Record-High US Stocks Make Hedging Difficult
- Investors are looking to equal-weighted S&P 500 Index
- Megacap tech firms have propelled stock gains this year
The artificial intelligence rally is driving stocks to fresh all-time highs, and hedging those gains requires greater creativity, according to JPMorgan Chase & Co.
For traders, the difficulty is hedging any potential downturn while not betting directly against wider momentum and the AI trade, JPMorgan’s Cash Equity Trader Matt Reiner wrote in a client note.