JPMorgan’s Marko Kolanovic is preparing for a possible 20% drop in the S&P 500

<p>JPMorgan’s Marko Kolanovic spoke with CNBC on Thursday, is looking for the further fall due to high interest rates setting up a shunt lower. </p><ul><li>Says cash at a 5.5% return in money market and short-term Treasurys is a key protection strategy at present</li><li>

“I’m not sure how we’re going to avoid (recession) if we stay at this level of interest rates,” </li><li>Says a short term bounce is possible</li><li>″[We’re] not necessarily calling for an immediate sharp pullback. Could there be another five, six, seven percent upside in equities? Of course… But there’s a downside. It could be 20% downside.”</li></ul><p>Kolanovic had been calling the market lower but had relented. Looks like he is back on the bear side again though. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.