Displaying items by tag: JPMorgan

Growth and value don’t typically have strong co-movement with one and other unless its a total market rally, however JPMorgan’s Kolanovic is telling investors that forking central banks, rising commodities, and stock sell off are the catalyst for the bulls to move on value and growth. He told investors to construct a barbell portfolio with bio-tech tech and innovation pulling growth and metals and mining leading the way for value. Its the perfect swarm of macro factors that can elevate these markets. International growth stock have fallen so far they are beginning to show P/E ratios that look like value stocks and should intrigue investors. JPMorgan says the war in Ukraine could persist which will continue to elevate commodities.

Finsum: This is a great time for traditional energy, particularly for bond investors stuck in the cold.

According to analysts at JPMorgan Chase & Co commodities could hit record territory and climb as high as 40% in the upcoming months. Investors tilting their portfolios into commodities are doing so in response to rampant inflation. Commodities might be at relative highs but there is lot of reason these prices could further elevate. Russia’s invasion pushed commodities prices higher as grains, metals, and fossil fuels were all affected. Goldman Sachs has also pushed raw materials as an inflation hedge.

Finsum: The trickle-down effect of oil prices alone could further boost commodities in the coming months.

(New York)

The market is in the worst shape it has been for some time, maybe the worst condition of the year. The S&P 500 fell over 3% last week on the combined news of a less dovish Fed and a huge tariff increase on China. Where things go from here is very uncertain, but JP Morgan is arguing that you should buy the dip. The bank’s strategists summarize their view this way, saying “Our core view remains that one should use the prospective weakness as an opportunity to add further, similar to the May experience. We continue to believe that global equities will advance further before the next U.S. recession strikes. We think that the growth-policy trade-off is far better now than it was in 2018”.

FINSUM: The market, economy, and politics are at quite a confusing point right now. Either things will gel to send prices higher, or it will all come crashing down like it did last year. Anyone’s guess.