JPMorgan’s Kolanovic Says Time to Cut Tech in Reopening Revival
- Recommends risk-on trade amid signs delta wave likely peaked
- His view contrasts with growing warnings about market turmoil
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The growth scare that has prompted investors to seek safety in technology companies is overdone as the economic drag from the delta coronavirus variant is likely short-lived, according to JPMorgan Chase & Co. strategists led by Marko Kolanovic.
Investors should consider cutting exposure to tech shares, while raising stakes in economically sensitive companies like energy, the strategists recommended. Their upbeat view contrasts with a growing chorus of warnings that investors should brace for turmoil particularly in U.S. stocks amid a Covid-19 resurgence.