J.P. Morgan Private Bank says conditions in place for a new high for equities in 2024

<p>Head of Specialized Strategies at J.P. Morgan Private Bank spoke in a CNBC interview.</p><p>In brief:</p><ul><li>positive outlook for earnings … could cause new highs by the middle of 2024<ul><li>“We think we bottomed out last quarter, we began to re-accelerate, and the fundamental story is a good one, which is supportive of stocks.”</li></ul></li><li>higher-for-longer rate environment means rates have reached an intermediate top, which is of benefit to equities<ul><li>Fed speak is what’s going to ultimately drive the direction of rates</li></ul></li><li>believes there will be a soft landing</li><li>new highs in the market next year will be largely driven by earning growth, not by valuations</li></ul><p>What to watch:</p><ul><li>“Higher crude oil prices hurt earnings, and at the end of the day, that’s what the market is going to respond to, but it’s also going to hurt the consumer” </li></ul><p>On the attacks in Israel for the market:</p><ul><li>“History gives us a pretty clear roadmap on geopolitics and the impact on markets.”
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Markets quickly tend to pivot back towards fundamentals</li><li>Depending on the stability of the oil markets, the shift would be back to the Fed, and this season’s earnings coming up</li></ul>

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