KIM - 2 Under-The-Radar REITs

2024-06-30 07:00:00 ET

Summary

• Marko Kolanovic predicts a stock market plunge of more than 20% to 4,200 by the end of the year.
• Historically, positive first-half returns for the S&P 500 lead to positive second-half returns, but election years tend to have worse results.
• Kimco Realty Corp. and Terreno Realty Corp. are undervalued REITs with growth potential in the strip mall and industrial sectors, offering income and dividend growth opportunities.

Marko Kolanovic is one of the market’s most prominent “commentators.”

Officially, he’s JPMorgan’s MD and Global Head of Macro Quantitative and Derivatives Strategy.

While not everything he says needs to be taken at face value, he just made an interesting call, as he explained he sees a stock market plunge of more than 20% to 4,200 by the end of the year.

“There is a clear disconnect in the huge run-up in US equity valuations and the business cycle,” the strategist wrote, adding that the S&P 500’s 15% year-to-date gain isn’t justified, given waning growth projections. – Bloomberg

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