JPMorgan’s Kolanovic Bucks Consensus by Seeing Stagflation Risks

  • Hotter CPI, PPI cast a shadow over economic optimism, he says
  • Market is similar to when equities were flat from 1967 to 1980

The JPMorgan Chase & Co. headquarters in New York.

Photographer: Michael Nagle/Bloomberg
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JPMorgan Chase & Co.’s Marko Kolanovic, who drew attention for his gloomy stock-market calls through last year’s rally, is raising a risk that’s mostly gone out of vogue on Wall Street: a return of 1970s-style stagflation.

The bank’s chief market strategist said a recent pickup in consumer and producer prices has cast a shadow over the economic enthusiasm that powered equity markets in recent months.