JPMorgan Cautious on Stocks and Bonds Amid High Inflation and Recession Risks
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JPMorgan is overweight commodities like energy outside of gold, citing geopolitical risks and weak positioning.
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The bank is underweight government bonds due to increasing supply and already-strong performance.
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JPMorgan believes investors are too optimistic on equities given headwinds like high inflation, rate hikes, and recession risks.
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The bank expects consumers to pull back spending due to depleted savings and tighter credit.
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JPMorgan sees consensus earnings estimates for next year as too high given likely demand destruction.