On October 5, 2023, Marko Kolanovic, who is the Chief Global Market Strategist and co-head of Global Research at J.P. Morgan, appeared on CNBC’s “Fast Money” to discuss various topics, including his thoughts on the stock market, the Federal Reserve’s stance on interest rates, and how mega-cap stocks are performing compared to mid-sized stocks.
Kolanovic holds a Ph.D. in theoretical high-energy physics from New York University and uses quantitative methods for market analysis. His team has consistently received top rankings in Institutional Investor surveys worldwide, and he is personally ranked #1 in Americas Equity Derivatives.
Before joining J.P. Morgan, he held important positions at Bear Stearns and Merrill Lynch. He’s known for making accurate short-term market predictions and has been nicknamed ‘The Man who moves Markets’ by CNBC and ‘Gandalf’ by Bloomberg. In 2020, he was inducted into the Institutional Investor Hall of Fame.
Market Outlook: Kolanovic started by sharing a somewhat negative view of the stock market. While he didn’t say a recession is guaranteed, he believes it might happen eventually. He also mentioned that the potential for gains in stocks doesn’t look particularly great right now.
Economic Indicators: Kolanovic pointed out that the job market is strong, but he highlighted some concerns in the consumer sector, like more people falling behind on credit card and auto loan payments. These could be early signs of economic trouble, although he didn’t say that people are feeling pessimistic about the economy.
Interest Rates: Kolanovic talked about the current interest rates, especially the 4.7% yield on the ten-year Treasury. He said these rates don’t match up with historical market levels and suggested they might rise a bit more, although he didn’t seem extremely worried about the current rates.
Market Dynamics: He mentioned the difference between the NASDAQ and other markets. The NASDAQ and big-cap stocks have been doing well, but other markets have been flat or down. He suggested two options: invest in stocks that have been lagging behind if you think there won’t be a recession, or avoid big-cap stocks if you expect a recession.
Positioning and Sentiment: Kolanovic stressed that where investors put their money matters and has been crucial this year. He noted that less market turbulence has been good for the market. However, he didn’t say that increasing turbulence is necessarily a sign of harder times ahead.
Volatility as an Asset Class: Kolanovic briefly talked about using volatility as an asset. He mentioned that it’s tough to invest only in volatility because it’s generally not profitable. Instead, he suggested that investors could use it to make money by selling short-term options.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
