JPMorgan tells clients to take profits amid risk to stock rally

"Some argue the next leg up for the market will be supported by the laggards," Mr Kolanovic said. "We see this as a tall order given that underperformers are generally more cyclical with lower pricing power and higher interest rate sensitivity." "Absent pre-emptive [Federal Reserve interest rate] easing, we expect a more challenging macro backdrop for stocks in the second half with softening consumer trends at a time when equities have re-rated sharply." JPMorgan also noted that equity positioning had significantly risen from October and was now above average as investors chased the rally. It also cited "growing recession fatigue"….