JPMorgan Team Says Soft Landing Is More Likely Than Recession
- Hawkish central bank rhetoric is not as important as data
- Easing in inflation should be positive for cyclical assets
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A soft landing is becoming the more likely scenario for the global economy, which will continue to provide tailwinds for risky assets, according to strategists at JPMorgan Chase & Co. who have been stalwart equity bulls for much of the year.
Recent data pointing to moderating inflation and wage pressures, rebounding growth and stabilizing consumer confidence suggest the world will avoid a recession, a team including Marko Kolanovic and Nikolaos Panigirtzoglou wrote on Monday. Markets can benefit from fiscal stimulus in China, energy support plans in Europe and very low investor sentiment, they said.