Cash and bond proposal from US star strategist

One of the star names of the US markets, JPMorgan Strategist Marko Kolanovic, advised his investors to build cash and bond positions instead of stocks. JPMorgan’s star strategist Marko Kolanovic, who has made pessimistic predictions for stocks in recent years, advised his investors to build cash and bond positions instead of stocks. The star strategist, who suggested that there would be a lose-lose situation for stocks next year, stated that stocks would not be able to sustain potential rallies if central banks did not make serious interest rate cuts. Kolanovic said in a note he published, “This is a dead end. We need to see a market decline and increased volatility before monetary conditions soften in 2024 and a more permanent rally.” Kolanovic calculated that even in the most optimistic economic scenario, stocks could only gain about 5 percent more value than bonds and cash, while in a scenario of falling growth or a recession, stocks could perform 20 percent worse than cash. “Regardless of whether a recession occurs or not, the risk-reward balance in stocks and other risky assets will be worse than in cash or bonds,” Kolanovic said.