JPM - JP Morgan's Kolanovic Prefers Cash Over Stocks In 2024 Cites Improbability Of Swift Rate Cuts By Federal Reserve | Benzinga
In a recent reveal, JP Morgan’s Marko Kolanovic suggests a lean towards cash over stocks in 2024, attributing the shift to the improbability of swift interest rate cuts by the Federal Reserve.
What Happened: Kolanovic’s outlook is based on the over-optimism of investors in sidestepping a possible economic recession in 2024. He cites high equity valuations, tight credit spreads, and low market volatility as signs of a non-conducive environment for hefty investments in stocks, reported Business Insider.
JPMorgan (NYSE:JPM), strategist, Kolanovic consistently holds a bearish view on risky assets and the overall macroeconomic environment, influenced by factors such as interest rate shocks, dwindling consumer strength, geopolitical challenges, and high risky asset valuations.
“We remain cautious on risky assets and the broader macro outlook due to the interest rate shock (over the past 18 months) that should negatively impact economic activity, fading consumer strength, geopolitical headwinds, and expensive risky asset valuations,” said Kolanovic, according to the report.
Despite a bullish stock market in 2023, Kolanovic forecasts a transition in 2024, with a potential decrease in inflation and economic demand, which could adversely impact equity prices.
Kolanovic is skeptical about the Fed’s likelihood of aggressively reducing interest rates ...