Business & Finance
JPMorgan Warns Chip Stock Rally Poses Risk of Market ‘Tantrums’
Key Points
JPMorgan Warns Chip Stock Rally Poses Risk of Market ‘Tantrums’ The risk of market “tantrums” is rising as sharp swings in semiconductor stocks force some investors to cut allocations, according to JPMorgan Chase & Co. strategists. The team led by Nikolaos Panigirtzoglou said a rebound in chip stocks to record highs this week has been accompanied by higher volatility, potentially triggering so-called VaR shocks for portfolios. That’s a scenario where big market moves cause investors to...
JPMorgan Warns Chip Stock Rally Poses Risk of Market ‘Tantrums’
The risk of market “tantrums” is rising as sharp swings in semiconductor stocks force some investors to cut allocations, according to JPMorgan Chase & Co. strategists.
The team led by Nikolaos Panigirtzoglou said a rebound in chip stocks to record highs this week has been accompanied by higher volatility, potentially triggering so-called VaR shocks for portfolios. That’s a scenario where big market moves cause investors to breach their Value-at-Risk limits, requiring them to reduce positions even if they still believe in the underlying trade.