JPMorgan’s Marko Kolanovic is abstaining from the early 2023 rally.
Instead, the Institutional Investor hall-of-famer is bracing for a 10% or more correction in the first half of this year, telling investors he’s “outright negative” on the market.
“Fundamentals are deteriorating. And, the market has been moving up. So, that has to clash at some point,” the firm’s chief market strategist and global research co-head told CNBC’s “Fast Money” on Tuesday.
Kolanovic slashed his firm’s exposure to stocks last week to underweight. In a recent note, he warned the market is not currently pricing in a recession. His base case is a hard landing.
“Short-term interest rates moved a lot in the last six months, and they’ll probably still go a bit higher and stay there,” he said. “The consumer took a lot of debt. Interest rates went up. The consumer was resilient, and that was sort of our thesis last year… But as time progresses, they’re less and less resilient.”
Kolanovic, who is ranked as the number…
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