JPMorgan Chase Warns US Stocks ‘Not a Good Place To Hide’ As Billionaire Paul Tudor Jones Braces for Fresh Market Lows
JPMorgan Chase simply issued a market replace, warning sentiment and macroeconomic information don’t assist a sustained restoration for shares.
Mislav Matejka, the pinnacle of world and European fairness technique at JPMorgan, says buyers look like overly bullish on US equities regardless of elevated recession dangers and commerce uncertainty, reports Investing.com.
Final month, JPMorgan raised the chances of a world recession from 40% to 60% amid President Trump’s commerce conflict.
Matejka says that, in contrast to up to now, US shares are now not a “good place to cover in” throughout an financial downturn.
“The precise recession might nonetheless be averted, but when one have been to return by way of, the views by many who it’s already within the value might show to be too optimistic.”
Matejka helps his bearish stance on the S&P 500 by mentioning that US equities are costly, buying and selling at 21x ahead earnings, whereas progress expectations are too excessive to account for a possible recession. He additionally warns the Fed is poised to carry rates of interest regular amid mounting inflation expectations, even because the economic system exhibits indicators of cracking.
Billionaire Paul Tudor Jones seems to echo JPMorgan’s outlook. In a brand new CNBC interview, Tudor Jones warns that Trump’s tariffs and a hawkish Fed might drag the inventory market under its 2025 low of 4,835 factors.
“For me, it’s fairly clear. You could have Trump who’s locked in on tariffs. You could have the Fed who’s locked in on not chopping charges. That’s not good for the inventory market. We’ll in all probability go all the way down to new lows…
There are taxes, like the most important tax improve because the [1960s]. So you may take 2 to three% off progress and then you definately acquired the Fed who’s, except they acquired actually dovish and actually, actually reduce, you’re in all probability going to new lows. After which once we’re at new lows, the laborious information will begin to comply with and it’ll in all probability create the Fed to maneuver, create Trump to maneuver after which we’ll get some type of rally after.”
As of Friday’s shut, the S&P 500 is buying and selling at 5,659.
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