JPMorgan Says U.S. Stocks Won’t Continue to Outperform
- Dollar selloff, EM rally most likely scenario: JPM strategists
- Escalation in U.S.-China trade war should be averted
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The recent outperformance in U.S. stocks relative to the rest of the world won’t continue, in part due to its unprecedented nature, according to JPMorgan Chase & Co.
Emerging markets and value assets will stage a rally and the dollar’s recent strength will likely abate, while U.S. equities continue higher but lag behind other markets, strategists Marko Kolanovic and Bram Kaplan wrote in a note Tuesday. An alternative scenario of dollar strength and declining U.S. shares is less likely, though possible, they said.