Current S&P 500 valuation is not leaving 'any margin for error' - JPMorgan
- Stocks pause as key inflation data eyed
- Citi says S&P 500 not in a bubble, tells investors to 'buy pullbacks'
- eBay delivers upbeat guidance, Q4 results top estimates; unveils $2B stock buyback
- JPMorgan's Kolanovic says the S&P 500 rally is at risk from a narrative shift
- Apple (AAPL) discontinues its electric car project, redirects team to focus on GenAI
The consensus among “almost all economists” and the market supporting a soft landing leaves “any margin for error,” according to JPMorgan’s strategists led by Mislav Matejka.
“Crucially, unlike a year ago, when almost all economists and the market pricing had recession as a base case, both are in a soft landing camp now – perhaps one should be contrarian yet again,” Matejka said in a client note.
The banking titan anticipates that 2024 earnings projections are likely to move lower, while bond yields may have peaked.
The analysis factors in a contracting money supply in the U.S. and Europe, a strongly inverted yield curve, and potential weakening of corporate pricing power.
As a result, JPMorgan is recommending its clients stay overweight Japan, the UK, and Switzerland, neutral on emerging markets and the U.S., and underweight the Eurozone.
The strategists also suggest long positions in utilities and real estate compared to short positions in banks and autos, while maintaining an overweight position in telecoms and energy.
By Senad Karaahmetovic
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO: S&P 500 nearing 2024 price target, but still comfortable with target
- DA Davidson Downgrades Sterling Construction (STRL) to Neutral, 'Material NT Upside Levers Less Clear'
- US durable goods orders slump; business investment on equipment appears soft
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot List
Related EntitiesJPMorgan, Standard & Poor's, Earnings, Senad Karaahmetovic
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!