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Kolanovic: ‘Pessimism Rising,’ EPS Estimates Too Rosy
"Investors’ pessimism is rising."
So said JPMorgan analysts led by Marko Kolanovic on Monday.
It's true. Investors are feeling a little glum right now, what with the S&P all but guaranteed to post a third straight monthly loss thanks in no small part to an epochal Treasury selloff that'll be forever enshrined in the annals of market history.
Individual investor sentiment recently erased the entirety of the Nvidia/debt ceiling deal rebound.
Kolanovic on Monday echoed familiar worries
Per my tracking, 3Q reports have improved, a little. Of companies reporting by 10/31 am, 40% by name saw +ve revisions for 4Q revenue (or, 50% by market cap) and 32% saw +ve revisions for 4Q EPS (or, 43%) .
I think what Kolvanic describes in the last quoted paragraph would happen in a normalization, no recession required.