DIDI - Fed hawkishness has peaked with inflation to follow - JPMorgan's Kolanovic

The growth-policy tradeoff created by the global tightening cycle looks set to improve in the second half of the year, according to JPMorgan. "We have potentially passed peak Fed hawkishness and this is expected to be joined by a likely peak in inflation, on a yoy change basis," global strategist Marko Kolanovic wrote in a note. "The investor outlook with respect to growth momentum has come down aggressively, limiting the potential for a disappointment from here." "Many describe the recent market bounce as a 'bear market rally', but the chances are that the stabilization becomes more durable," Kolanovic said. "This is especially given the reduced positioning and cautious consensus outlook, and we note market internals over the past month are pro-risk. Earnings revisions are back to broadly positive over the past weeks in key regions." "With the S&P (SP500) (NYSEARCA:SPY) down 20% from its Jan peak, 2022 and 2023 EPS

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Fed hawkishness has peaked, with inflation to follow - JPMorgan's Kolanovic