JP Morgan’s number one risk for stocks this year (TL;DR, its valuations)

Comments are via J.P. Morgan Asset Management.

While the managers remain bullish, and indeed are ‘overweight’, on stocks they say

• Number one risk heading into 2025 valuations
• JPM feels very strongly in the need for earnings to back up valuations
• JPM says they are not saying we’re underweight stocks because valuations are too expensive
• But are emphasising the need for strong earnings ahead
• “We don’t need multiple expansion to get the return this year, because we think we can get it through earnings.”

The scare in December and early January … is it in the rearview mirror now?

SPX update earlier:

• S&P cannot close at a new high. New intraday high reached.

This article was written by Eamonn Sheridan at www.forexlive.com.