America First Won’t Last Much Longer in
Stocks, JPMorgan Warns
“This is the latest
warning from JPMorgan Chase & Co. strategists led by Marko Kolanovic, who
say to cut holdings in U.S. equities and add money in emerging markets. As the
benefits from President Donald Trump’s tax cuts dissipate, the world’s largest
economy is set to lose its edge in growth, they said.
“The large U.S.
fiscal boost this year, as well as the delayed positive impact of weak USD and
low rates from last year created a ‘sugar high’ for U.S. assets this year,” the
strategists wrote in a note to clients. “We expect convergence of macro
fundamentals between U.S. and international markets in the coming quarters;
with equity markets tending to price forward fundamentals by six to 12 months,
the time for the rotation may be now.”
Update:
Dollar Traders See the Fed’s Next Rate Hike as a Big Sell Signal