JPMorgan's Marko Kolanovic warns that a recession could still happen

Per Business Insider

JPMorgan strategist Marko Kolanovic has recently commented on the stock market. While others are trying to seize the bull stock market, the strategist says that a recession could still happen.

Kolanovic released a statement urging people to still be cautious while reportedly remaining underweight equities while being overweight cash. The strategist also commented on how a recession was likely necessary to reach target inflation.

Kolanovic: "While the economy's recent resilience may delay the onset of a recession, we believe that most of the lagged effects of the past year's monetary tightening have yet to be felt and ultimately a recession will likely be necessary to return inflation to target,"

The strategist then further commented on how they remained defensive during the situation and how they thought that equity risk-reward remained poor. It was also noted that there was a "disconnect between equities and bonds."

Kolanovic: "As such, we maintain a defensive asset allocation and believe the risk-reward for equities remains poor given the disconnect between equities and bonds, high likelihood of a recession over the coming quarters, high rates, tightening liquidity, rich valuations, and the still-narrow market breadth."

In March, Kolanovic gave a note to JPMorgan clients regarding the bank's thoughts on the Feds. During that time, it was noted that "a soft landing now looks unlikely."

During that time, they maintained that the Feds were past the point of no return and that the firm, along with multiple backs, had all rewritten their forecasts regarding a recession.

In April, Fed staff reportedly projected a mild recession that was expected to happen later in 2023. This came as policymakers scaled back their interest-rate hike expectations for this year after the banking turmoils.

During that time, officials also stressed the need to watch incoming data and find out how deeply an anticipated credit card crunch would slow the economy.

See flow at unusualwhales.com/flow.

Other News:

Resources:

Business Insider

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.