Marko Kolanovic of JPMorgan Chase & Co. (NYSE: JPM ) remains steadfast in his bearish stance on stocks, as the S&P 500 inches closer to his projected year-end target of 4,200, with the index trading around 4,260 this Wednesday.
Kolanovic anticipates heightened market volatility driven by the Federal Reserve's high-interest rates and fluctuations in the Cboe Volatility Index. These conditions echo the environment preceding the 2008 financial crisis.
Despite a significant rally in the S&P 500, which surged 16% in 2023, Kolanovic foresees potential investor withdrawal. This prediction comes amid looming tight Federal Reserve policy, escalating geopolitical risks, and ongoing equity allocation reductions.
The S&P 500's performance this year has been robust so far, but Kolanovic's outlook suggests that investors should brace for potential market turbulence. His prediction is primarily influenced by similarities he observes between current conditions and those that led to the financial crisis in 2008.
While the market has shown resilience in the face of challenges this year, Kolanovic's bearish outlook underlines potential risks that could disrupt this upward trend. His forecast serves as a reminder for investors to remain vigilant of market conditions and economic indicators that could signal changes in investment landscapes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.