JPMorgan’s Kolanovic Cuts Equity Allocation on Weak 2023 Outlook
- Shifts to moderate underweight stocks from overweight
- Kolanovic reiterates 4,200 year-end 2023 price target for S&P
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JPMorgan Chase & Co. strategist Marko Kolanovic reiterated in a note to clients Monday that he sees downside risk for the stock market between now and the end of the first quarter, as the bank reduced its recommended equity allocation due to a soft economic outlook in 2023.
The bank now rates stocks as “moderate underweight” down from “overweight” and is trimming its risk exposure in commodities, while increasing its allocation to corporate bonds and cash, according to a team of strategists led by Kolanovic.