Marko Kolanovic is the former Chief Market Strategist at JPMorgan and he gives his view on the US Stock market. This interview marks his first since leaving this trillion-dollar bank.
Kolanovic said in an interview with CNBC that a correction for the US Stock Market could be coming due to a lack of momentum among stocks like the electric carmaker Tesla, and analytics software company Palantir Technologies.
Analysts warn that the stock markets are still facing the same problems that caused a correction in the market earlier this year.
The loss of momentum could trigger a small correction, because we are close to our all-time highest levels. But the issues remain. There is a trade conflict, signs of an economic slowdown and valuations have returned to their previous highs. That’s what I was expecting, a slight pullback in the market .”
Kolanovic thinks that patient investors could be rewarded by a possible pullback, if the probability of an economic contraction in the US does not increase significantly.
There are also some aspects that make US markets cheap. You can wait until the garden-variety sell-off, which is usually 5% to 10%.
But I would keep an open mind that maybe at this point there is increased probability of recession and perhaps even 5% [is not a good buy].” Keep an open mind. There may be increased recession probability at this point and maybe 5% at that time isn’t a good buy.
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The post Stock Market Pullback is Sight as Several America’s problems Still Remain Warns Ex-JPMorgan Strategist could be updated depending on the latest developments.
