U.S. banking giant JPMorgan Chase (JPM) says investors are holding more cash than at
anytime in the last decade as global stock markets continue to decline.
JPMorgan estimates that cash levels are close to 40% right now, the highest level in a decade.
The Wall Street bank tracks a metric based on holdings of stocks, bonds, and cash that’s
outside of central banks and commercial lenders.
Investors are hoarding cash to find safety from this year’s steep losses, said JPMorgan.
Inflation and rising interest rates have ended the cycle of easy money, the bank said.
Market analysts at JPMorgan are forecasting that, with so much cash available, stock markets
should find a bottom and gain support in coming months.
However, JPMorgan’s forecasts haven’t been accurate so far this year. The bank has remained
bullish on stocks despite the U.S. markets, notably the benchmark S&P 500 index, falling into a
bear market defined as a drop of 20% or more from recent highs.
JPMorgan stock is down 30% this year at $113.92 U.S. per share.
