U.S. stocks head for punishing selloff as ‘unknown unknowns’ could drag market lower, JPMorgan analysts warn

 After standing by their bearish view on the market all year, a team led by JPM Chief Global Markets Strategist Marko Kolanovic is warning clients that U.S. stocks could be headed for selloff due to some murky, unseen catalyst, according to a research note shared with MarketWatch on Thursday.

Simply put, investors might soon wake up to the realization that equity valuations are too elevated once the economy starts to slow. JPM expects the long-anticipated recession could begin during the fourth quarter, or first quarter of 2024.

“Unknown unknowns” is a phrase used by former Defense Secretary Donald Rumsfeld in a 2002 news briefing, where he said: “There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns — the ones we don’t know we don’t know.”

MarketWatch 22 June 2023

U.S. stocks head for punishing selloff as 'unknown unknowns' could drag market lower, JPMorgan analysts warn - MarketWatch

Defense Secretary Donald Rumsfeld in a 2002 news briefing

https://www.youtube.com/watch?v=REWeBzGuzCc

Defense Secretary Donald H. Rumsfeld and Vietnamese Minister of Defense Gen. Pham Van Tra participate in a ceremony officially welcoming Rumsfeld to Hanoi

Vem vann Vietnam-kriget? (internetional.se)