“It’s time to cut stock positions, divert money into commodities,” said Marko Kolanovic, strategist at JPMorgan Chase. Marko Kolanovic stated that the performance of stocks exceeded the performance of other assets in the environment where the fears of recession decreased, and said that it is time for investors to direct their money to commodities by reducing their stock performances moderately.
“Better than feared, economic data was priced in stock and credit markets. Commodities lagged behind other risky assets. We are shifting some of our risk distribution from stocks to commodities,” Kolanovic said. Stating that the strategy team continued the recommendation to increase weight for risky assets, Kolanovic also emphasized that they maintained the recommendation to reduce weight for cash and fixed incomes.
