A former top JPMorgan strategist, Marko Kolanovic, is predicting a potential stock market correction. In a recent CNBC interview, he pointed to several factors fueling his concern.
Losing Steam
Kolanovic highlighted the slowing momentum of major stocks like Tesla and Palantir as a key warning sign. He noted that the market is near record highs, despite persistent economic challenges.
Old Problems, New Worries
Kolanovic emphasized that the US economy still faces the same issues that caused a market downturn earlier this year. These include trade tensions and signs of economic slowdown, coupled with valuations returning to peak levels. He summarized his outlook: “We still have all the problems… a little bit of a pullback here” is expected.
A Buying Opportunity? Maybe.
Kolanovic believes a potential 5-10% market dip could be a good time for patient investors to buy in. However, he cautioned that this depends heavily on whether the risk of a US recession increases significantly. If the recession risk remains low after a pullback, it might be a good buying opportunity. But if the recession risk rises, even a 5% dip might not be a good time to buy.
