JPMorgan strategist Marko Kolanovic has recently warned that the risk-on mood fueling the 2021 equities rally is likely to falter, with the potential for stock indices to return to last year’s lows over the following months. Kolanovic noted that in spite of the Federal Reserve declaring no intention to cut interest rates this year, the stock market has seen unprecedented gains with the Nasdaq 100 index rising over 20% since January and entering a bull market.
Analysts believe that this surge in stock prices over the past few weeks is primarily due to systemic investors, a short squeeze, and a decline in the Cboe Volatility Index. Although risk sentiment has somewhat stabilized in the near-term, Kolanovic has warned of the danger of it “accordion-like” nature and cautioned investors that higher-interest rates could return to the market.
JPMorgan is one of the largest banks in the United States and one of the oldest financial institutions in the nation. Headquartered in New York City, JPMorgan serves clients in over 100 countries and has over 40 million clients globally. It operates in consumer financial services, investment banking, and asset management, offering a range of products and services for businesses and individuals alike.
Marko Kolanovic is a strategist and quantitative researcher at JPMorgan Asset Management, and is known for his insights on the markets and financial regulation. He obtained a Bachelor of Science in Physics from the University of Zagreb in his native Croatia and continued to the University of Pennsylvania for a Masters in Mathematics and a doctorate in Physics. Kolanovic is now a leading voice in the world of finance, providing his expertise on the markets and his forward-looking insights on the world of investing.