A snippet from JPMorgan’s Marko Kolanovic. He had garnered a bit of a reputation as a perma-bull but has managed to shake that off.
Remarks:
- We remain cautious on risk assets
- are reluctant to chase the past weeks’ rally as recession and overtightening risks remain high
- a lot of good news is already in the price in terms of inflation moderation or the potential for a soft landing
- “The market is behaving as if we were in an early cycle recovery phase, but the Fed has not even concluded hiking yet,”
- While signs of declining inflation pressures are in principle positive, ongoing tightness in labor markets is likely to put pressure on margins, and may cause central banks to tighten further than markets expect,"
His comments came prior to the slump on Wall Street on Wednesday. It was not a good day for the bulls:
Weaker data hurts the US stock indices
