JPMorgan’s Kolanovic Sees Stock Selloff as US Debt Talks Drag On
- Reiterates underweight call, cites 2011 debt event as a guide
- Rally built on handful of stocks ‘can easily reverse,’ he says
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JPMorgan Chase & Co.’s Marko Kolanovic joined a chorus of Wall Street strategists Monday in warning that the US debt-ceiling impasse is yet another headwind threatening the outlook for equity markets.
The strategist reiterated a call to remain underweight both US and European stocks as X-date approaches, with a potential political standoff on a resolution exacerbating the already present threat of a recession — particularly if 2011’s debt event is any guide.