JPMorgan’s Kolanovic sees US stocks struggling without Fed cut

Bloomberg/Alexandra Semenova/6-22-2023

“[Kolanovic] cautioned that multiple expansion and eroding pricing power make the risk-reward for US equities unattractive, adding another area of concern is ‘increasing investor complacency’ ahead of a potential recession. ‘In short, the risk of another unknown unknown resurfacing appears high,’ he said.”

USAGOLD note: It is difficult to know with any degree of certainty which side is right in the debate on future stock market values. A judicious hedge lifts the ordinary investor above the fray……… The best approach, in our view, remains to hope for the best but plan for the worst.