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JPM Sees Stock Surge In 2021 As Trillions In “Unlocked” Liquidity Flood Into The Market

At the start of November, in a moment of brutal honesty, JPMorgan’s quant strategist Nikolas Panigirtzoglou made a remarkable admission: there is nothing better for stocks than another economic catastrophe such as a new round of lockdowns. Why? Because more economic pain means even more Fed intervention (especially in a world where the Congress is hopelessly deadlocked on additional fiscal stimulus). Here is what Panigirtzoglou said:

Although it has had a negative impact in the short term, the reemergence of lockdowns and resultant growth weakness could bolster the above equity upside over the medium to longer term via inducing more QE and thus more liquidity creation.

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