JPMorgan’s Kolanovic Rebukes Bubble Warnings, Urging Buy the Dip
- Light positioning among pros expected to drive market upside
- Sees selloff as opportunity to rotate into recovery trade
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With a battle between retail investors and short sellers whipping up market volatility, Marko Kolanovic is urging investors to ignore warnings about a bubble and buy the dip on any fallout from the skirmish.
While the frenzied trading in heavily-shorted companies and penny stocks signals euphoria among day traders as the broader market declines, the JPMorgan Chase & Co. quantitative strategist says professional investors are far from bullish. The firm’s model tracking computer-driven strategies to stock-picking funds shows their equity positioning sat in the 30th percentile of a 15-year range.