Only one big short is left among Wall Street\’s stock market opinions. After Morgan Stanley\’s Mike Wilson defected on Monday, only JPMorgan Chase\’s Marko Kolanovic still maintains his pessimistic view on U.S. stocks.
Kolanovic reiterated his views in a note to clients late Monday, calling against buying stocks while acknowledging that this negative view has hurt JPMorgan\’s portfolio over the past year as global stocks rose to record highs. Configure the model.
He cited a series of reasons to remain bearish, including high valuations, the likelihood that interest rates will remain restrictive for longer, rising inflation data, consumer pressure and geopolitical uncertainty.
\”The negative stance on equities has hurt the performance of our multi-asset portfolio over the past year,\” Kolanovic acknowledged.
He also added: We do not currently view the stock as an attractive investment. We also do not see a reason to change our position.
Kolanovic is now the last dissident among the Wall Street bank\’s equity strategists after Morgan Stanley\’s Wilson turned bullish on U.S. stocks on Monday.
Wilson now expects the S&P 500 to rise to 5.400 by June 2025. This is a sharp reversal from his previous forecast of a 15% decline for the index by December.
Among the major Wall Street banks, JPMorgan Chase has the lowest year-end target for the S&P 500. It is only 4.200 points, implying more than 20% downside from Monday\’s closing price.
The second-lowest year-end target comes from Citigroup, which gives a forecast of 5.100, indicating that the market is likely to see a mild downside from current levels.
Goldman Sachs has a target of 5.200, also signaling that there is no more room to rise.
But neither the banks\’ top equity strategists, Scott Chronert or David Kostin, are warning that a big drop is coming, as is the JPMorgan team.
At the same time, Bank of America and Wells Fargo expect the S&P 500 index to rise further. The year-end target levels given are 5.400 points and 5.535 points respectively.
Both banks raised their initial forecasts as U.S. stocks continued to climb on the back of a strong economy and corporate earnings, as well as a continued rise in the AI craze.
Kolanovic’s outlook for U.S. stocks has fallen short for the third consecutive year.
Despite his prediction of a decline, the S&P 500 is up 11% so far in 2024.
He was also bearish last year. But the stock market rose 24%.
He was bullish for much of 2022. The market fell 19% that year.
JP Morgan strategist Kolanovic continues to bet on U.S. stocks and becomes Wall Street’s only remaining big short
There is only one big short left among Wall Street’s stock market opinions. After Morgan Stanley’s Mike Wilson defected on Monday, only JPMorgan Chase’s Marko Kolanovic still maintains his pessimistic view on U.S. stocks.
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