JPMorgan Quant Guru: S&P 500 Earnings Growth Estimates for 2024 Are Too Optimistic
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S&P 500 earnings growth estimates for 2024 are too optimistic according to JPMorgan's quant guru Marko Kolanovic.
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Kolanovic recommends an underweight position in stocks and increasing bond allocations due to high valuations and disappointing earnings growth.
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Weakening PMI momentum suggests Q3 earnings growth will likely be negative.
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Wall Street expects 12% S&P 500 EPS growth in 2024, but Kolanovic believes estimates are still too high.
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Interest rates are expected to stay high, and negative impacts from Fed tightening have further to materialize, weighing on earnings.