JPMorgan says stocks in these sectors will lead markets higher as economy recovers

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Investment bank JPMorgan expects cyclical stocks to lead the market higher in the medium- to long-term as the business cycle improves.

"You're going to see cyclicals and more defensive names continue the rally after we get past this period of adjustment," said James Sullivan, head of Asia ex-Japan equity research at JPMorgan.

The move fueled expectations of higher inflation and investors worried it would prompt central banks to raise interest rates. Higher interest rates can knock down stocks with relatively high valuations.SeongJoon Cho | Bloomberg | Getty Images A steepening yield curve occurs when rates for longer dated bonds rise faster than interest rates for shorter dated bonds and typically indicates thatJPMorgan is also positive on consumer stocks, according to Sullivan. "We are seeing very strong consumption trends across the board," he said, adding the bank "would be positive on both financials and consumer as a result."

 

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WallStreet 'advisers' and mass media: CNBC, Bloomberg have to be very proud for luring clueless retail 'investors' into the biggest StockMarket BUBBLE in history! This is what they are paid for by big corporations - turning retail investors into bagholders!

I don’t really take jpmorgan too seriously with a $90 price target on $TSLA I’ll do my own stock picking thank you JPM.

wow

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