Even a mild recession could cause stocks to crater by 15% or more, JPMorgan's Kolanovic says

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The JPMorgan Chase & Co. strategist says equity investors should tread carefully.

The JPMorgan Chase & Co. JPM strategist nicknamed “Gandalf” for his timely market calls says equity investors should tread carefully, because even a mild recession could cause U.S. stocks to fall by 15% or more.

As... The JPMorgan Chase & Co. JPM strategist nicknamed “Gandalf” for his timely market calls says equity investors should tread carefully, because even a mild recession could cause U.S. stocks to fall by 15% or more. As of Monday’s close, the S&P 500 SPX was sporting a forward price-to-earnings ratio of 18.3, which is still above the 10-year average of 17.3, according to FactSet.

“Short-term fixed income provides not only full protection on the downside but also optionality to buy risky asset classes should this pullback happen,” Kolanovic said.

 

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$JPM sure has high highs today boys I tell ya

15% of what price

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