This my summary from a note via Marko Kolanovic, JPM's chief global markets strategist.

Says 4 reasons to remain bullish:

  1. impressive Q2 earnings results
  2. investors are remaining only cautiously positioned, funds are around average exposure, thus with room to allocate (ie buy) more
  3. says there are indications the Delta variant outbreak is beginning to recede (citing the effective reproduction number of COVID-19 infections is falling in 40 out of 50 states)
  4. the correlation between stocks and bonds is beginning to normalise (and bond yields have bottomed) he is an optimist still on the reflation trade

On potential risks:

  • of a sharp rise in bond yields
  • sell-down of hyper-growth stock sectors that benefited from the COVID-19 lockdowns