Kolanovic

The last time we heard from JP Morgan uber-quant Marko Kolanovic was in early October when the world was full of fear.

At the time he said it was time to buy the dip because fears of higher yields were overdone. He said the market could absorb higher yields.

"We don't expect a broad market selloff unless yields were to rise above 250-300 bps (US 10y), which we don't foresee in the near term," he said at the time.

Two-and-a-half months later the S&P 500 was up 11.5%.

He's out with a similar comment today.

"Near term we recommend buying the dip on US indices given oversold conditions... though medium term we favor EM/China/Europe on a regional basis on improving activity and easing headwinds, and the UK on valuation."

The S&P 500 is down 1.6%.