US stocks keep climbing higher but J.P. Morgan’s Kolanovic is having none of it

J.P Morgan strategist Marko Kolanovic made his name as a market-structure analyst but at some point he parlayed his fame into a job as an equity strategist and it hasn’t gone well, considering his bearish stance has run head-first into a roaring bull market.

Nonetheless, he remains undeterred and today writes:

“.. Our cautious stance has been based on our view that there is no re-rating upside, and that any upside had to therefore come from earnings growth, which we see being insufficient to take on equity risk even under best case scenario assumptions. For equities to avoid a 20%+ correction, you have to believe that tech will become a much more meaningful driver of growth for the broad economy in short order. While we believe tech will continue to be the key driver of economic growth for years to come, we don’t think its impact on corporate P&Ls across the board will be that profound so suddenly, and so we remain cautious here, expecting economic growth to weaken, equities to correct, and investors to find a better entry point.”

A search for ‘Kolanovic’ on our site shows just how relentlessly negative he has been.

The good news is that he will eventually be right, though markets often turn at the moment the bears throw in the towel.

This article was written by Adam Button at www.forexlive.com.