Kolanovic has been Wall Street’s most vocal bull this year.
Source: Bloomberg News
Marko Kolanovic at JPMorgan Chase & Co is more cautious about the economic and market recoveries he says in an interview with Bloomberg.
Wall Street´s bull of the year is trimming risk allocations in the bank´s model portfolio with cuts of the equity overweight and bond underweight. He is citing risks from geopolitics and central bank policies.
In a note to clients on Monday he wrote as the Chief global markets strategist: “Recent developments on these fronts — namely, the increasingly hawkish rhetoric from central banks, and escalation of the war in Ukraine — are likely to delay the economic and market recovery,”
It is not the first time in recent weeks Mr. Kolanovic has expressed views of a delay in the market recovery. Earlier in October, he said that such risks might push the bank´s achievement of year-end S&P 500 Index target (4,800) into 2023. Said target is a gain of almost 30% from the current level of the S&P 500.
The number 1 equity-linked strategist (Institutional Investor survey 2021) hasn´t had great success with his bull calls so far this year. During the summer he did maintain the idea that the US stock market was very much poised for a gradual recovery for the remaining part of the year. He said it´s likely that the S&P 500 would end unchanged in 2022 and therefor urging investors to buy the dip.
True to form Mr. Kolanovic is sticking with a risky stance overall given the expectations for growth recovering in Asia and investor positioning (bearish) limiting further declines in stocks.
He said: “We expect the global expansion to continue to display resilience through the middle of next year given an unwind of adverse supply shocks, a material slowing in inflation, and a healthy private sector,”