JP Morgan’s Kolanovic expects equity markets to hold up over Fed tapering


Comments from JPM’s strategists led by Marko Kolanovic, via a Bloomberg article:

  • “While the market will likely hold up through Fed tapering, those wishing to hedge associated risk should consider using credit or credit volatility rather than equities given credit’s more limited upside and lower implied volatility levels”

The first clue to tapering does not appear likely to come from Powell’s speech at Jackson Hole on Friday … but, hey, stranger things have happened:

And, speaking of expecting equities to hang in there, UBS published their latest equity outlook over the weekend just passed:

  • raised their S&P 500 target for end-2021 to 4,600 (previously forecasting 4,500) 
  • and added a projection for end-’22 of 5,000 
Fed Chair Powell masked

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