JPMorgan's Kolanovic warned that US equities rally will not persist

<p>A note on Monday from JPMorgan strategist Marko Kolanovic</p><ul><li>“We believe that equities will soon revert back to an unattractive risk-reward"</li></ul><p>He cited:</p><ul><li>Fed set to remain higher for longer</li><li>valuations are rich</li><li>earnings expectations remain too optimistic</li><li>pricing power is waning</li><li>profit margins are at risk</li><li>slowdown in topline growth is set to continue</li></ul><p>On the current market "bad news is good news" narrative:</p><ul><li>"zone may be quite narrow, as it is difficult to distinguish between a healthy slowdown and the initial stages of recession without the benefit of hindsight,” </li><li>“With the market now pricing in a full ease by mid-2024, valuations rich and the increase in supply, we turn tactically short on 7Y USTs, after taking profit on longs in 5Y USTs, and look for a steeper curve at the long end.”</li></ul>

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