Rate cuts may lead to a slowdown in stock market gains - Mr. Mateika of JP Morgan.
September 2, 2024 17:21 JST (excerpt)
US rate cuts are due to economic slowdown - strategist
Seasonal factors also pose headwinds - September historically the worst month for US stocks
Even if the US Federal Reserve starts the expected rate cut cycle, strategists at JP Morgan Chase point out that the stock market rally may stall near record highs.
US rate cuts are due to economic slowdown - strategist
Seasonal factors also pose headwinds - September historically the worst month for US stocks
Even if the US Federal Reserve starts the expected rate cut cycle, strategists at JP Morgan Chase point out that the stock market rally may stall near record highs.
This year, the team led by Michal Matějka, who has the most bearish view on stocks, argued that any policy easing would be reactive and aimed at addressing the slowdown. September historically the worst month for US stocks.
Matějka reiterated his preference for defensive sectors against the backdrop of declining bond yields, stating that "sentiment and positioning indicators are far from attractive, and political and geopolitical uncertainties are increasing. September's seasonal factors are also expected to be challenging this year," according to the report.
Matějka reiterated his preference for defensive sectors against the backdrop of declining bond yields, stating that "sentiment and positioning indicators are far from attractive, and political and geopolitical uncertainties are increasing. September's seasonal factors are also expected to be challenging this year," according to the report.
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