JPMorgan issues stock warning

Despite the stock market rally that started with the new year, JPMorgan Chase & Co. star strategist Marko Kolanovic once again drew attention to downside risks for stock markets. JPMorgan Chase & Co. strategist Marko Kolanovic recommended reducing the weight of stocks, citing recession concerns and excessive tightening by central banks. Kolanovic strengthened his recommendation to reduce the weight of Eurozone stocks, which have recently outperformed their peers, while maintaining his ‘increase the weight’ recommendation for emerging markets and Chinese stocks. “We maintain our cautious stance against risky assets. Recession and excessive tightening risks remain high. We believe that good news such as moderation in inflation and a potential soft landing scenario are already priced in,” Kolanovic wrote in his note. Kolanovic, who has been prominent on Wall Street with his optimistic forecasts for stocks for many years, changed his views to pessimistic after the sell-off last year.