<p><img src="https://static3.businessinsider.com/image/5fbea21e037cbd00186125a4-2000/2020-04-26t161034z_360774756_rc2gcg9jmrx9_rtrmadp_3_health-coronavirus-usa-new-york.jpg" border="0" alt="NYSE" data-mce-source="Jeenah Moon/Reuters" data-mce-caption="The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 26, 2020."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li><strong>About 29% of investors view COVID-19 variants as the greatest risk to markets, according to a JPMorgan survey.</strong></li><li><strong>Investors also cited a possible correction in expensive equity sectors and stronger inflation as dangers to the bull market.</strong></li><li><strong>Six-in-ten respondents deemed cryptocurrencies as being in a bubble, and nearly all said they believe fraud is at least somewhat prevalent in the space.</strong></li><li><strong><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell'utm_source=markets&utm_medium=ingest">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>.</strong></li></ul><hr><p>Investors are split on which downside risks are most likely to topple the stock market's bull run.</p><p><a href="https://markets.businessinsider.com/stocks/jpm-stock">JPMorgan</a> surveyed clients attending its Macro Quantitative conference in late January on several aspects of the current investing landscape. The questioning came as stocks sat near then-record highs, lifted by hopes for another stimulus bill and declining COVID-19 case counts.</p><p>Concerns of overvaluation and the emergence of new COVID-19 variants have since dented the market's run-up, and those risks remain top of mind for investors. About 29% of surveyed investors deemed coronavirus mutations the biggest risk to markets, while 28% cited a correction in expensive equity sectors, according to JPMorgan. Roughly one-fifth of respondents named rising yields and stronger inflation as a major risk.</p><p>Only 13% of investors cited concerns of central-bank tapering. The Federal Reserve has indicated it won't slow the pace of its asset purchases until the US economy makes "substantial further progress" toward reaching above-2% inflation and maximum employment. For now, the Fed continues to buy at least $80 billion of Treasurys and $40 billion of mortgage-backed securities each month.</p><p>A double-dip recession scenario was the least-feared market risk, garnering just 9% of investors' votes.</p><p>Nearly 60% of investors thought cryptocurrencies were in a bubble. Bitcoin had just fallen from highs of nearly $40,000 at the time of the conference and now trades near $52,000.</p><p>Only 11% of investors said they trade cryptocurrencies, and of those who said they don't, 22% plan to start. A majority of respondents said they believe cryptocurrencies are "here to stay." More than three-quarters of respondents expect tighter regulation of the cryptocurrency market, and almost all investors believe fraud is either somewhat or very prevalent in the space. </p><p>Electric vehicles and green tech stocks were viewed as a bubble by 29% of investors surveyed, according to JPMorgan. Only 3% of investors saw bond-proxies as trading in bubble territory despite yields sitting close to record lows.</p><p>Nearly half of the survey's respondents see ESG funds receiving the largest inflows, while risk parity strategies are expected to see the largest outflows. About 84% of investors expect value outperformance to continue as the economy reopens and ailing sectors rebound.</p><p><a href="https://markets.businessinsider.com/currencies/news/stock-market-risks-coronavirus-strains-valuations-bubble-jpmorgan-investor-survey-2021-3-1030146131#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/worlds-most-expensive-liquid-thoroughbred-horse-semen-2020-3">Why thoroughbred horse semen is the world's most expensive liquid</a></p>
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