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Kolanovic: Market Risk-Reward ‘Heavily Favors Cash’
"Markets often bottom before the end of a recession, but not before the beginning of one," JPMorgan analysts led by Marko Kolanovic said Monday. The emphasis was in the original.
Kolanovic, who turned cautious late last summer amid concerns around the potential for over-tightening from central banks and worsening geopolitical tensions, remains skeptical of risk assets. JPMorgan's model portfolio still reflects an Underweight in equities and an Overweight in cash.
Editorializing around that jux
“”Markets often bottom before the end of a recession, but not before the beginning of one,” JPMorgan analysts led by Marko Kolanovic said Monday”
🙂
For months, lots of erudite commentaries from the same smart guys I respect about why the equity market needs to reprice lower. Maybe they’re right, but just not yet, and its just the market being irrational longer than you can remain solvent.
But at some point doesn’t the onus shift to explaining WHY equities remain bid? Too large a short base? $130tln of concentrated private wealth or LT retirement assets with a less tactical approach to portfolio management? “I’m richer than hell and I don’t need to sell”
I think in April equities grind higher at least until sell in May, or some other catalyst….
Here’s your answer: https://heisenbergreport.com/2023/04/18/three-reasons-stocks-keep-frustrating-the-bears/