Need to Know: This superbull at JPMorgan who called the summer rally sees a soft landing ahead. Here’s his advice on stocks and oil.

by | Sep 13, 2022 | Stock Market

A fifth-straight win was taken off the table after August CPI numbers surprised on the upside. And it looks like there’s nothing to sway the Fed from a 75-basis-point hike this month. Still, when it does look like CPI is peaking, our chart of the day below has some good news for investors.

Onto our call of the day, which comes from one of Wall Street’s staunchest bulls, JPMorgan’s Marko Kolanovic, who is betting on a soft landing for the global economy. The chief market strategist was spot on with a call for stocks to rally this summer, and was heard last month telling investors to hang on, as the gains aren’t over. For starters, investors need to trust the data more and obsess over central banks less, he says. “We maintain that economic data and investor positioning are more important factors for risky asset performance than central bank rhetoric. And the data appear to be increasingly supportive of a soft landing (rather than global recession), given moderating inflation and wage pressures, rebounding growth indicators, and stabilizing consumer confidence,” Kolanovic told clients in a new note. He sees a global recession as avoidable owing to expectations China and Europe will support their needy economies. Low investor positioning and sentiment should also “continue to provide tailwinds for risky assets, despite the more hawkish central bank rhetoric recently.” Among those assets, JPM is keeping an “aggressive overweight” in commodities and commodity-sensitive assets, due to a supercycle thesis and to hedge for inflation and geopoliti …

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