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J.P. Morgan Predicts 30%-Plus Rally for These 2 Stocks

Basic physics, and the evidence of our own eyes, tells us that what goes up must come down. But the NASDAQ is over 13,000, and the S&P 500 is over 3,800, and some market watchers are starting to wonder where the ceiling is. Banking giant JPMorgan investigates that question, seeking to find out just how much room the bulls have left to run in the current market conditions.Looking back to the collapse of Lehman Brothers, and the financial crisis of 2008, the bank’s global markets strategist Nikolaos Panigirtzoglou notes that, among stocks, bonds, and cash, the average equity holding has been 42.3%. He points out that this ‘neutral’ level was breach in November, and equity allocations now are nearer 43.8%.This increase from the average would imply that there may not be much room for stocks to keep going up – except that the post-Lehman equity allocation high, reached in January 2018, was 47.6%. To state the obvious, we’re not there yet. Panigirtzoglou sees the ongoing expansion of the M2 monetary base fueling the stock boom, and insulating it from changes in the bond markets.Against this backdrop, JPMorgan analysts are pounding the table on two stocks in particular, noting that each could surge over 30% in the year ahead. We ran the the two through TipRanks database to see what other Wall Street’s analysts have to say about them. ContextLogic (WISH)We will start with ContextLogic, the parent company of Wish.com. This e-commerce marketplace has become known for its social media ads, both for their ubiquitous presence and their entertainment value. Wish has a knack for drawing traffic and customers – it has become the third-largest online retail site it the US, with over 100 million monthly visitors and more than 150 million items listed for sale. The company’s revenue exceeds $2 billion annually.The company’s growth is being driven by several factors: the high monthly traffic, the large – and largely untapped – e-commerce customer base of low-income households looking for budget goods, and worldwide network of more than 500 million merchants.WISH ran up a great deal of hype in December, when it held its…