JPMorgan's Mark Kolanovic says markets are likely in for an extended bumpy ride. "Despite the strong early-summer rally, our framework continues to point to challenging macro fundamentals and headwinds for risky assets," Kolanovic wrote in a Wednesday note. "This reasoning is based on market valuations , investor positioning, and various macro and geopolitical considerations.
He also pointed toward increasing delinquencies tied to auto loans, credit cards, loans and mortgages, and said the last time such a strong uptick occurred in 2007, before the Great Financial Crisis. The analyst drew a comparison of current macroeconomic conditions to 2008, although he noted key differences remain, including a more lock-step effort from global central banks to tighten monetary policy.