Kolanovic Laments Stocks’ ‘Complete Disregard’ For Macro, Policy Signals

Equities are disconnected both from macro and policy realities. That's according to JPMorgan analysts led by Marko Kolanovic, who's still Underweight stocks. Equity vol, he wrote Monday, is discounting just 3% odds of a downturn, against the bank's one-year recession probability model, which puts the likelihood at 70%. "Stocks have overshot the soft data and completely disregarded other leading indicators," Kolanovic said. The figure below makes the point. Monday's warning was the latest in