Overview

• JPMorgan's Dubravko Lakos-Bujas warns that the stock market could face a 'flash crash' due to extreme concentration in top tech stocks.
• The potential for an unexpected market correction is heightened by the crowding in popular momentum stocks, including the 'Magnificent Seven'.
• Recent slides in Apple and Tesla stocks indicate cracks in the high-momentum trade, with both companies experiencing significant drops year-to-date.
• Lakos-Bujas advises investors to diversify their portfolios to avoid being caught on the 'wrong side' of a potential correction.
• The warning comes amid a robust first quarter for stocks, but with increasing risks looming, including the upcoming 2024 presidential election.