JPMorgan says stocks will climb nearly 50% as investors flee low returns in bonds and cash

A man wearing a protective mask sits on top of the Charging Bull sculpture near Wall St. amid the coronavirus pandemic on April 19, 2020 in New York City, United States.
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Investors are still largely sitting on the sidelines after the market's epic rebound, but the low returns in bonds and cash have left them with no alternatives but to embrace risk assets again, according to JPMorgan. The firm sees a nearly 50% rise in stocks over the long term due to this shift.

"Our most holistic of our equity position metrics, which compares the size of the equity universe to the size of the bond and cash universe, implies 47% upside for equities from here assuming the implied equity allocation of non-bank investors globally rises from 40% currently to the post Lehman period high of 49%,"  Nikolaos Panigirtzoglou, a managing director at JPMorgan, said in a note on Friday.