Investors should reduce risk, JPMorgan strategy chief warns
With the S&P 500 soaring more than 20% year to date, JPMorgan Asset Management’s chief global strategist David Kelly fears markets have become “distorted.”
Investors are now pricing in a rosy soft landing scenario for the U.S. economy after years of recession fears, but that has led valuations to soar, making stocks look riskier.
“I am getting increasingly queasy about the fact that the equity market keeps on pricing in a soft landing,” Kelly told Business Insider in a recent interview, warning investors should “dial back risk.”
Although he also sees a “very nice soft landing path” for the economy with inflation fading and the labor market remaining resilient, stocks may have a valuation problem that makes…
