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Markets May Hit ‘Air Pocket’ Soon, Kolanovic Warns
Fade it. That's the mantra among some of Wall Street's most recognizable names when it comes to 2023's early stock rally.
On Monday, Morgan Stanley's Mike Wilson "doubled down" (his words) on the bank's cautious stance, citing a litany of familiar concerns, including expectations for margin compression and the headwind from Fed policy.
A few hours later, JPMorgan analysts led by Marko Kolanovic likewise said investors should fade the rally. "Recession risks are merely postponed rather than dim
H-Man, I believe the “air pocket” has a higher probability than the “200 car crash” on the interstate. One could also argue that as the “air pocket” approaches, the likelihood of the “200 car crash” becomes even more remote and vice versa (no “air pocket” enhances the probability of the “200 car crash”). Anyway good stuff to ponder.
I am very sympathetic to the bear case. It is what I believe, in fact. The issue is time.