JPMorgan's top strategist says buy more gold, stay underweight stocks because of high rates, geopolitics

Marko Kolanovic said he holds a cautious outlook and is maintaining a defensive tilt in his portfolio.

JPMorgan's top strategist is telling investors to buy more gold and remain underweight stocks. Marko Kolanovic on Tuesday said he holds a negative outlook over the medium term, even as stocks come off their recent lows. All three major averages remain higher this month, shrugging off higher yields and the breakout of the Israel-Hamas conflict. The S & P 500 is up around 2%.

"Equity valuation faces increasing risk from higher for longer. Equities are up YTD mostly on multiple expansion while real rates and cost of capital are moving deeper into restric-tive territory," Kolanovic wrote. "History suggests this relationship is becoming increasingly unsustainable, posing risk to the equity multiple. The current level of real rate implies S & P 500 multiple is overvalued by ~2.7x ," he added.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

CNBC /  🏆 12. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

This is how JPMorgan's massive income ETF can again pull ahead of the stock marketThe JPMorgan Equity Premium Income ETF (JEPI) has held up better than the S&P 500 over the past three months.
Read more »

JPMorgan sees 20% upside for this information security firm with 'best-in-class' revenue growthJPMorgan foresees an attractive setup setup ahead for this information security stock, which has underperformed due to overblown geopolitical fears.
Read more »

CNBC Daily Open: JPMorgan's big profit growth isn’t likely to persistGoing into this earnings season, analysts feared big banks’ income wouldn’t hold up from the previous quarters. Those fears didn’t materialize — for now.
Read more »

CNBC Daily Open: JPMorgan's big profit growth isn't likely to persistGoing into this earnings season, analysts feared big banks’ income wouldn’t hold up from the previous quarters. Those fears didn’t materialize — for…
Read more »

JPMorgan's stock has room to rise 60% over the next 18 months, analyst says while hiking price targetSteve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.
Read more »

Divergence With Bonds Hints at Potential Decline for StocksMarket Overview Analysis by Michael Kramer covering: S&P 500, Citigroup Inc, JPMorgan Chase & Co, Wells Fargo & Company. Read Michael Kramer's latest article on Investing.com
Read more »