‘The early stages of a collapse’: The stock market is undergoing a ruthless shift that reminds JPMorgan of a seemingly invincible trade that blew up in 2018

• Marko Kolanovic, JPMorgan’s global head of quantitative and derivatives strategy, thinks the recent spike in oil prices will accelerate the decline of one of the market’s most-loved trades.
• He also details how the rotation out of momentum stocks and into value stocks is similar to the short-volatility trade he correctly predicted would collapse in 2018.

Source: ‘The early stages of a collapse’: The stock market is undergoing a ruthless shift that reminds JPMorgan of a seemingly invincible trade that blew up in 2018