Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Stocks aren't attractive at the moment: JPMorgan

Published 05/20/2024, 05:17 PM
© Reuters.

JPMorgan Chase & Co. (NYSE:JPM) maintained its notoriously bearish stance on equities, advising clients that stocks do not present an attractive investment opportunity at present.

The broker's market strategists pointed to a multitude of factors reinforcing this perspective, including high equity valuations, tight credit spreads, and persistent low volatility.

Moreover, the strategist highlighted the impact of restrictive interest rates expected to persist, elevated inflation, stretched investor positioning, consumer stress, and geopolitical uncertainty as reasons for the firm's defensive positioning.

In a client note, the strategist emphasized the lack of appeal in equities.

"We do not see equities as attractive investments at the moment and we don’t see a reason to change our stance."

The report also dismissed the potential of narrow market themes, such as artificial intelligence, to outweigh broader market challenges.

Along these lines, JPMorgan reiterated its recommendation for investors to be underweight in equities and credit, while suggesting an overweight position in commodities and cash.

The strategists acknowledged that this negative outlook on equities has adversely affected the performance of the firm's multi-asset portfolio over the past year.

However, this impact was partially mitigated by a favorable position in commodities and the benefits of high cash and fixed-income yields.

Despite the bearish view from JPMorgan, the S&P 500 Index has shown resilience, with an 11.3% increase in 2024, defying the strategist's expectations for a decline.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.