JPMs Marko Kolanovic is still bearish stocks.
Equities and bonds rallied into year-end, leaving markets appearing overbought and sentiment in complacent territory, e.g., illustrated by high RSIs, elevated Bull-Bear, VIX near lows, tight credit spreads and rich valuations.
As a result, we’ve seen a partial reversal of the year-end rally since the start of the year, amid somewhat stronger data flow and a resurgence of geopolitical risks.
