HomeFinancial MarketsCut Stocks, Hold Onto Cash, JPMorgan Strategist Advises

Cut Stocks, Hold Onto Cash, JPMorgan Strategist Advises

JPMorgan Chase & Co.’s Marko Kolanovic advised clients to consider selling off some shares while retaining their cash. This comes as the team of JPMorgan strategists led by Kolanovic reduced their stocks and corporate bonds allocations while boosting their cash holdings by 2%.

Kolanovic’s reasons for distributing this advice are the Federal Reserve’s still-hawkish monetary policy, the ongoing U.S. debt talks that appear to be deadlocked, as well as increased recessions risks.

“Hopes of a swift resolution to the US debt ceiling have somewhat bolstered market sentiment,” Kolanovic stated in a note to clients. “Despite last week’s rebound, risk assets are failing to break out of this year’s ranges, and if anything credit and commodities are trading at the lower end of this year’s ranges.

The JPMorgan advisor continued that even though equities are trading near this year’s highs, the investment company’s model portfolio has suffered a third loss in the last four months.

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