Wall Street Bear Doubles Down as Stocks Continue to Soar
Despite the ongoing bullish run in the stock market, one prominent Wall Street bear is not backing down. Marko Kolanovic, strategist at JPMorgan Chase, reiterated his negative stance on Monday, predicting a significant drop in the S&P 500 by the end of the year.
Kolanovic’s pessimism stands in contrast to the recent shift in sentiment from other analysts, such as Morgan Stanley’s Mike Wilson, who raised his 12-month S&P 500 target. Kolanovic, however, remains steadfast in his belief that stocks are not attractive investments at the moment.
The strategist points to factors such as restrictive rates, inflation, and the financial strain on lower-income consumers as reasons for his bearish outlook. Despite being overly bullish in 2022 and overly bearish in 2023, Kolanovic now predicts a market correction of at least 20%, making him one of the most prominent bearish voices among big-bank analysts.
While Kolanovic acknowledges that his bearish stance has impacted the performance of his multi-asset portfolio, he has found some offset in allocating more to commodities, which have seen price gains.
Other Wall Street analysts have varying outlooks on the market, with Bank of America and Deutsche Bank expecting the S&P 500 to end the year at 5400 and 5500, respectively. The most optimistic estimate, by Wells Fargo, predicts a 17% increase in stocks this year. Citigroup and Goldman Sachs analysts have more conservative targets, anticipating a moderate cooling rather than a full-fledged bear market.
As the stock market continues to hit new highs, Kolanovic’s unwavering bearish stance serves as a reminder that not all analysts are convinced of the current market trajectory. Investors will be watching closely to see how the market unfolds in the coming months.
