Stay bullish
Mislav says positive catalysts are not exhausted. Five reasons why JPM equity strategists see further upside.
1. Post the activity deceleration seen in summer, the pace of growth is likely to stabilize into 2022.
2. Fed is unlikely to keep moving further and further into hawkish territory in the 1H of ‘22, at least relative to what is
priced in currently. This holds for ECB too.3. continue to see gains for earnings, and believe that consensus projections for 2022 will again prove too low.4. In absolute terms, P/E multiples are elevated, but not equity yields vs credit & bond yields. Notably, there was some multiple compression last year.5. The overall technical picture is favourable, with equities typically performing well at the start of the year.
1. Post the activity deceleration seen in summer, the pace of growth is likely to stabilize into 2022.
2. Fed is unlikely to keep moving further and further into hawkish territory in the 1H of ‘22, at least relative to what is
priced in currently. This holds for ECB too.3. continue to see gains for earnings, and believe that consensus projections for 2022 will again prove too low.4. In absolute terms, P/E multiples are elevated, but not equity yields vs credit & bond yields. Notably, there was some multiple compression last year.5. The overall technical picture is favourable, with equities typically performing well at the start of the year.
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