JPMorgan Issues New Blunt Warning

Strategists at JPMorgan led by Marko Kolanovic issued this warning:

“We remain of the view that the delayed impact of the global interest rate shock (real estate, consumer credit, quantitative tightening and liquidity, etc.), steady erosion of consumer savings and post COVID pent-up demand, and deeply troubling global geopolitical context will result in market declines and re-emergence of market volatility.”

Adding that…

“We acknowledge that we cannot time this inflection near term, but there are no data points that would prompt us to change our methodology or conclusions.”

Now, I’m not sure if JPMorgan will be proven right or wrong.

But what I am sure is that betting on the direction of the stock market is a bet that has a 50% chance of success at best.

Frankly, stocks could be a mixed bag this month and the next.

That’s why I’m making both long and short trades.

This hedging strategy lets you make money no matter if JPMorgan is right or not.