Risk-Reward Ratio Turning Less Favorable For Equities: JPM

Although stocks are likely to continue to trade well in the near term, from a medium-term perspective, the risk-reward is becoming less attractive for equities, argues a recent report from JP Morgan. Mislav Matejka and team at JP Morgan Cazenove in their November 30, 2015 research report on equity strategy for 2016 note the long period of indiscriminately buying any dip may be coming to an end. Potential headwinds for equities in 2016 and beyond Matejka and colleagues point out that equities had a bumpy ride in 2015, but are managing to eke out a positive return for the year….