JPMorgan's top equity guru says buy more government bonds, avoid stocks as a recession looms at the turn of the year

Investors should buy more government bonds to brace for the likelihood of a recession hitting later this year, JPMorgan's top equity strategist says. Investors are increasingly deserting defensive positions as more market participants expect a soft landing scenario for the economy. This comes on the heels of a strong start to the year, with the Nasdaq Composite climbing more than 30%, notching its best first half since 1983.

"This benign and complacent pricing of recession risk, along with increasing signs that a credit cycle is emerging, makes us turn more negative on corporate bonds and more positive on government bonds," Kolanovic wrote to clients on Monday. "We therefore trim our allocation to credit by shifting two percentage points away from corporate bonds and into government bonds in our model portfolio," Kolanovic wrote.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

JPMorgan reveals its 'pecking order' for the second half including these high-yielding global stocksJPMorgan named a raft of European stocks it described as having high yields, strong balance sheets and safe dividends.
Source: CNBC - 🏆 12. / 72 Read more »

Morgan Stanley hires JPMorgan's North America M&A head -sourcesMorgan Stanley has hired senior investment banker Marco Caggiano from JPMorgan Chase & Co , where he led the bank's North America mergers and acquisitions (M&A) business, people familiar with the matter said on Monday.
Source: Reuters - 🏆 2. / 97 Read more »

Buy 'best-in-class' JPMorgan Chase thanks to strong earnings potential, Jefferies saysJefferies upgraded the banking giant Tuesday to buy from hold. It also raised its price target to $165 per share from $149.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks making the biggest premarket moves: JetBlue, Zillow, JPMorgan Chase, 3M and moreThese are the stocks posting the largest moves in the premarket.
Source: CNBC - 🏆 12. / 72 Read more »