Marko Kolanovic – Global Head of Research JPMorgan Chase & Co. says as the year progress U.S. equities to see upside even with the S&P 500 tumbling and bullish catalysts seeming rare these days.
“We can climb out of this hole,”, Kolanovic said to Bloomberg. He added, “there will be no recession this year, some summer increase in consumer activity on the back of reopening, China increasing monetary and fiscal measures.”
“Most of the bad things have happened already this year,” Kolanovic said.
That includes “the Fed making a very drastic turn and heading very aggressively toward tightening. And then war in Europe, which we would say is impacting commodities inflation for the consumer, especially in Europe. And then China, again, we were somewhat hopeful that China would stabilize and more rapidly stimulate their economy, and they would not go through significant lockdowns again.”
BlackRock Inc. also have suggested that concerns of an imminent recession are overblown, investors are piling into cash as stagflation worries mount, according to a recent Bank of America Corp. fund manager survey.
Kolanovic has maintained a bullish point of view even as stocks have tumbled.
