Top Wall Street strategist Marko Kolanovic said the recently rally in stocks makes little sense, prompting him to warn of a potential reversal.
Top Wall Street strategist Marko Kolanovic said the recently rally in stocks was merely a dead cat bounce as there has been no material improvement in fundamentals. "For a rational investor, we think this makes little sense and that most of the inflows over the past 2 weeks were driven by systematic investors, short squeeze and a decline in VIX," Kolanovic, JPMorgan's chief global markets strategist, said in a note Monday.
"We expect a reversal in risk sentiment and the market re-testing last year's low over the coming months." .SPX 1Y mountain S & P 500 The S & P 500 hit a 52-week low of 3,491.58 on Oct. 13. The equity benchmark would have to fall about 15% from here to reach that low.