JPMorgan sees $1 trillion flowing into the stock market in 2021 amid 'one of the best environments' in years

• Up to $1 trillion could flow into stocks next year in "one of the best environments for equities in a number of years," according to JPMorgan's Dubravko Lakos-Bujas said on Thursday.
• The head of equity strategy and global quantitative research told CNBC that market risks including the global trade war, the pandemic, and uncertainty around the US election will subside in 2021, and a massive flow of liquidity could help push the S&P 500 25% higher.
• "We're looking at about a trillion dollars worth of equity inflow/equity demand coming from systematic flows, hedge fund positioning, further retail buying, buybacks and very importantly, a continued rotation from non-equity into equity," Lakos-Bujas said.
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Up to $1 trillion could flow into stocks next year amid "one of the best environments for equities in a number of years," according to JPMorgan's Dubravko Lakos-Bujas.

The S&P 500 is currently trading near record highs, leaving some investors to question how much further stocks can go. Lakos-Bujas is bullish. In a note published Thursday, the head of equity strategy and global quantitative research said the S&P 500 could soar to 25% to 4,600 in 2021. A massive flood of cash could be the catalyst, he added.

"We're looking at about a trillion dollars worth of equity inflow/equity demand coming from systematic flows, hedge fund positioning, further retail buying, buybacks and very importantly, a continued rotation from non-equity into equity," Lakos-Bujas told CNBC. "So we're looking at a pretty positive environment especially for the first half of next year."

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Lakos-Bujas also told CNBC that market risks are subsiding, citing the easing of global trade war, coronavirus vaccine progress, and the conclusion of the US election. As the business cycle recovers with the deployment of a vaccine, investors are going to put additional capital to work, he added.

The top strategist also said that the money supply is growing at about 24% year-over-year, the largest increase since the 1940's.