No Fed urgency leaves stocks at risk: JPMorgan

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No Fed urgency leaves stocks at risk: JPMorgan

JPMorgan analysts have raised concerns that the current equity market is increasingly a"two-sided debate," with risks stemming from potential growth downturns, uncertain Fed timing, and various geopolitical factors.

The bank explains that in the first half of the year, market attention was largely focused on the trajectory of inflation. However, the second half of the year is shifting attention to growth risks, particularly given the elevated earnings expectations for the latter half of 2024 and for 2025 . The current market pullback is seen as a reaction to fears of weakening growth and a reassessment of recession probabilities.

However, they conclude:"While the recent market flush took out some of the froth, equity positioning and valuation still remain at risk especially if growth continues to decelerate and the Fed does not show urgency."Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

 

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