JPMorgan is the last bear on Wall Street
Why it’s not budging on a bearish stock view.
In a note to clients on Monday, Kolanovic admitted that a “negative stance on equities has hurt the performance of our multiasset portfolio over the past year.”
The bank has partly made up for that via a commodities overweight and high cash and fixed-income yields, he added.
“However, with very high equity valuations (as well as tight credit spreads and low levels of volatility), we do not see equities as attractive investments at the moment and we don’t see a reason to change our stance,” Kolanovic said.
The strategist believes “restrictive rates” will stay as such for longer, as inflation readings, on average, have disappointed to the upside.
“We don’t think that narrow themes like AI chips can compensate for all of those traditional market challenges that historically worked against the cycle,” Kolanovic said.
MarketWatch 21 May 2024
Another Wall Street bear has thrown in the towel
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