JPMorgan’s Kolanovic Warns of Further Stock Market Declines
The US stock market has been on a roller coaster ride in recent months, with wild swings in prices and a number of major indices hitting all-time highs. But according to JPMorgan’s Marko Kolanovic, the worst may not be over yet.
The Current Market Situation
The S&P 500 index has been on a tear since the start of the year, rising more than 20% since the start of 2021. The Nasdaq Composite has also been on a tear, rising more than 30% since the start of the year.
However, the market has been volatile in recent weeks, with the S&P 500 and Nasdaq both falling more than 5% in the past week. The Dow Jones Industrial Average has also been volatile, falling more than 4% in the past week.
Kolanovic’s Warning
JPMorgan’s Marko Kolanovic, a quantitative strategist, warned that the market could be in for further declines. In a note to clients, Kolanovic said that the market could be in for a “significant correction” in the near future.
Kolanovic said that the market is currently in a “risky environment” and that investors should be cautious. He noted that the market is currently in a “late-cycle” phase, which means that it is more vulnerable to shocks.
Kolanovic also warned that the market could be in for a “significant correction” if the Federal Reserve raises interest rates too quickly. He noted that the Fed has been slow to raise rates in the past, and that a sudden increase could cause a sharp sell-off in the market.
Kolanovic’s Advice
Kolanovic advised investors to be cautious and to diversify their portfolios. He noted that investors should look to invest in assets that are less correlated to the stock market, such as bonds and commodities.
Kolanovic also suggested that investors look to invest in stocks that are less correlated to the market, such as technology stocks. He noted that technology stocks have been outperforming the broader market in recent months, and that they could continue to do so in the future.
The Bottom Line
JPMorgan’s Marko Kolanovic has warned that the US stock market could be in for a “significant correction” in the near future. He advised investors to be cautious and to diversify their portfolios. Kolanovic also suggested that investors look to invest in stocks that are less correlated to the market, such as technology stocks. Ultimately, investors should be aware of the risks in the current market environment and take steps to protect their portfolios.