US stocks could underperform amid longest bull run in history

Markets were mostly flat on Wednesday.

The S&P 500 and STOXX Europe 600 both slipped marginally while in Asia, the Nikkei 225 rose 0.6 percent but the Shanghai Composite fell 0.7 percent.

While the US stock market appears on track to stretch its bull run to the longest ever, JP Morgan thinks that it will start to underperform the rest of the world.

“The recent divergence in the performance of US Equities vs. the rest of the world is unprecedented in history,” said Marko Kolanovic, quantitative and derivative strategist at JP Morgan, in a note to clients on Tuesday.

Kolanovic wrote that the trade dispute between the US and China will probably get resolved and that would “lead to a 'risk on' convergence”.