Investors should avoid stocks as recession is likely: JPMorgan's Kolanovic

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Investors should avoid stocks even amid this year's bullishness because a recession is still on the way, JPMorgan's Marko Kolanovic says

In a note on Wednesday, he remained underweight equities and overweight cash, even as risk assets have performed well since lawmakers reached a deal earlier this month to suspend the US debt ceiling, averting a catastrophic default.

"As such, we maintain a defensive asset allocation and believe the risk-reward for equities remains poor given the disconnect between equities and bonds, high likelihood of a recession over the coming quarters, high rates, tightening liquidity, rich valuations, and the still-narrow market breadth."

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