JPMorgan CEO Jamie Damon said yesterday (Wednesday) that “an economic hurricane is on its way to us and investors need to prepare. “Today the sun is still shining and the economic conditions are still relatively good, but that is going to change soon.”
● CEO Morgan warns: Prepare for “economic hurricane”
● Citi’s chief strategist has a theory that explains everything that happens in the markets
● President of the United States in a special article for the Wall Street Journal: “This is my plan to fight inflation”
However, not everyone in the US Big Bank seems to share his opinion. JPMorgan senior strategist Mark Kolonovich issued a statement to the contrary, writing to their clients: “Bear sentiment in the markets, and our expectation that there will be no recession given consumer activity in the US, the reopening of post-Corona’s global economies, and China’s recovery.” Kolonovich says the U.S. stock market appears ready for a gradual recovery this year, and the S&P 500 will remain unchanged until the end of the year because investors have already “absorbed and priced” aggressive policy changes from the Fed.
Kolonovich was ranked No. 1 in the Institutional Investor Survey last year as a “stock-linked” strategist, but this year his reputation seemed to be hurt when he and his team pushed their clients to buy stocks in decline, forcing investors to take advantage of earlier-year declines to buy more stocks. That the S&P 500 has lost 14% since the beginning of the year.
A large number of strategists also disagree with Kolnovich’s optimistic views. And many have said they see last week’s stock market recovery as short-term, with the level of risk to the economy and corporate earnings growth dependent on high inflation and Fed decisions.
However, Klonovich stuck to his views and estimated that investors’ concerns had reached unjustified heights: “The Bears estimate that only if the Fed changes its policy 180 degrees will it change the direction of the markets. Which will already be priced into the market. “