JPMorgan US stocks outlook somewhat differs from the other analyses, as the firm predicted the markets can go slightly higher from now on. Are the new market highs really coming?
The stunning rally that quickly conveyed blue-chip stocks to another record high—and helped them set their greatest week in five years—still has some space to keep running in spite of Friday’s retracement.
JPMorgan US stocks outlook
JPMorgan US stocks outlook is slightly different from the other analyses in the market, as JPMorgan global head of derivative market and quantitative analyst Marko Kolanovic has stated:
“We think markets can go somewhat higher from here.”
Mr. Kolanovic believes that the president-elect’s approaches, which would incorporate “the guarantee of a massive package,” would be incredible for stocks — at any rate in the short-term. JPMorgan, having a 2100 year-end value targets for the S&P 500 Index, says the index could rise to 2300 in mid-2017, and assumes that would bolster an almost 10% rally.
In addition, Mr. Kolanovic, who has frequently hailed as a Wall Street voice who moves the business sectors, had anticipated Trump’s potential victory. He additionally did not concur with the consensus opinion that Trump would spell fiasco for the business sectors, and make unpredictability spike.
What are the assessed risks?
However, he has admitted that Trump’s presidency, regardless of how well it is for business industry, produces longer-term drawback risks to the market. It comes in the face of his policies, such as restricting free trade and undermining to impose tariffs on major US exchanging accomplice China, could start a trade war. Mr. Kolanovic has added:
“We do imagine that ought to keep acknowledged volatility over the market somewhat elevated. There will be things the market will be astounded about.”
In conclusion, JPMorgan global head of derivative market and quantitative analyst stated that he still recommends investors and traders to keep safe-haven equities and assets in their portfolios.
Think we missed something? Let us know in the comments section below.