JPMorgan’s Marko Kolanovic, who accurately predicted the S&P 500 would hit 2,300 on President Donald Trump’s election win, now says another big event is about to happen—but this time, it has nothing to do with politics. A sizable sell-off could be just weeks away, according to Kolanovic, who’s the firm’s head of quantitative and derivatives research. He puts the time frame between next month’s Federal Reserve meeting and the June gathering.
Key Takeaways:
- A sizable sell-off could be just weeks away, according to Kolanovic, who’s the firm’s head of quantitative and derivatives research. He puts the time frame between next month’s Federal Reserve meeting and the June gathering.
- Kolanovic, who’s earned top honors from Institutional Investor, points to complacency and high leverage in the market as warning signs that a significant pause is likely.
- Kolanovic says the impending sell-off won’t be sparked by the political discourse surrounding Trump’s policies. Rather, the drop would be triggered by disappointing economic data or a policy shift by the Federal Reserve.
“”I tend to think what can turn it [the market rally] is a more hawkish Fed,” he said. “This week was pretty uneventful or the message was relatively dovish, so nothing happened.”
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