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Kolanovic Ups Gold, Cash Allocation As Risks Proliferate
Cash and gold. What's not to like?
Amid a grinding rally which took US equities to the top of a familiar range, JPMorgan's model portfolio has produced losses in three of the last four months, but analysts led by Marko Kolanovic doubled down Tuesday.
"We recommend investors fade the debt ceiling optimism and we adopt a more defensive stance by raising the allocation to cash and gold at the expense of energy, equities and credit," the bank said.
Kolanovic is hardly alone in eying stocks' buoya
I do not remember hearing very much about tax cuts being inflationary, but if the high end consumer is the last to begin fading their spending perhaps there is a correlation. Why would high end consumers feel a pinch, are they running out of money? Is the status of being able to spend big in this economy losing its hormonal (feels good) kick to these individuals.
Perhaps it’s plausible to think that high NW consumers got hat way, in part, because they were thriftier than we might give them credit for. We all try to pay less than the asking price and when that doesn’t work, we postpone purchases when we can. The wealthier among us are not immune to price increases they don’t think are justifiable.
Resumption of student loan payments later this year should dampen consumer spending, perhaps shaving a few tenths to GDP growth.
While Marko seems to be slumping since his 200 Trump reelection call, I’m with him here…along with being very long silver, platinum, and copper as i anticipate coming multi year supply shortages…assist goes to my most recent $12 cappuccino …