JPMorgan chief global markets strategist Marko Kolanovic, his note from Monday, in brief:
- resurgence in meme stocks is a bad sign for the stock market
- reiterated his bearish view
- "It is possible, but historically and statistically unlikely, that this time is different and that high valuations of risk assets are justified"
- cites S&P 500 forward price-to-earnings ratio at 21x compared to its 30-year average of 17x
- "What is perhaps different this time is that investors have little concern about asset valuations despite the high level of interest rates, and that is evidenced from the recent increase in meme stock and crypto trading activity, valuations of tech stocks, and diverging performance of stocks vs. bonds"
- recent economic data suggests an economic slowdown or even a recession ... "These signals include last week's Chicago PMI, past year increase of unemployment, sharp drop in home sales, almost 2 years of yield curve inversion, uptick in consumer delinquencies, and several others"
Kolanovic S&P 500 target is 4200
