The Tell: JP Morgan quant who called summer rally says there’s plenty of ammunition to drive stocks higher — and here’s why

by | Aug 18, 2022 | Stock Market

JPMorgan Chase & Co.’s Marko Kolanovic wants clients to hang on, because he thinks the rally in stocks is far from over. In a note entitled “Setting the Record Straight and What We Expect Next,” Kolanovic, the bank’s chief global market strategist, reiterated his view that fears of a global recession have been overblown, and that inflation will clear up, largely on its own, without much help from the Federal Reserve.

“Given our core view that there will be no global recession and that inflation will ease, the variable that matters the most is positioning,” Kolanovic said. “And positioning is still very low — for both systematic and discretionary funds it is now in the ~10th percentile.” Kolanovic has emerged as one of the few bulls left among Wall Street’s top strategists calling for U.S. stocks to continue rallying into year end. After nailing his call that stocks would rally this summer, he also reiterated an earlier recommendation to buy the dip. What’s more, encouraging data on inflation has help create room for the Federal Reserve to be “market friendly.” And with the midterm election looming in the U.S., “it would be a mistake for the …

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