US stocks at 'extreme undervaluation' - JPMAM

According to JPMAM’s composite valuation indicator, US stocks are at the lowest valuations in the 17-year history of the data. JPMAM says investors are refusing to take bets at present and are nervous about making large moves into equities or bonds. It pointed to the latest edition of Merrill Lynch’s Global Fund Manager Survey, which showed 41% of global fund managers are overweight in cash. “High levels of cash not only reflect risk aversion but also the risk of redemption,” the JPMAM report reads. “However, fund managers are not paid to be bankers and it seems reasonable to assess the...