JPM sticks with bullish call as rally broadens
JPM•JPM stays constructive on equities as market gains broaden
J.P. Morgan remains constructive on equities, arguing that a long list of investor worries, from geopolitics and inflation to concentration and bond selloffs, should not derail further gains in the second half of the year.
The U.S. bank sticks to its call for stocks to reach fresh record highs and expects market participation to broaden beyond the group of tech names that's driven much of this rally.
"We believe equity indices should be making fresh all-time highs in 2H, and look for further upside," JPM's Mislav Matejka writes in his latest strategy update.
That said, Matejka does not expect tech to emerge as a clear winner in the coming months, with volatility and concerns over profitability likely to come back from time to time.
The strategist believes policymakers will not need to become more aggressive as meaningful inflation pressures are unlikely to materialise, while a softer labour market could fuel a "bad is good" dynamic.
"If the macro outlook we envisaged for 2H keeps gaining traction, that should be supportive for further equity upside," he says.
