Stock Groups

$150 oil won’t cripple economy, market: J.P. Morgan’s Marko Kolanovic


J.P. Morgan’s Marko Kolanovic predicts oil is surging higher — but so are stocks.

Kolanovic is the chief global market strategist for the company and the cohead of global research. He believes that the U.S. can handle high oil prices up to $150 per barrel.

There could be additional spikes in oil prices, particularly given the current situation in Europe. He said that we would not be surprised if oil prices spiked further, especially given the current situation in Europe and war.Fast MoneyTuesday. It could only be temporary and then, eventually, it will normalize.

WTI crude oil is at its three-month highs. settling up 0.77% to $119.41 a barrel on Tuesday. Brent crude finished at $120.57. Shanghai was released from its two-month Covid-19 lockdown and opened up to more demand.

“We believe that the consumer is capable of handling oil at $130 or $135. That’s because we have it back in 2010, 2010 and 2014. This was the inflation adjusted level. Kolanovic stated that “the consumer is capable of handling it.” Kolanovic has received top honours for Institutional Investor’s accurate forecasts many years running.

He believes that the U.S. economy and world economy will not enter recession.

Jamie Dimon, CEO of JPMorgan Chase and Chairman of the JPMorgan Chase Board of Directors spoke out at last week’s financial conference. he’s preparing for an economic “hurricane”This could either be Superstorm Sandy or a minor one.

Kolanovic believes it is vital to be prepared for any possibility.

He said, “We forecast some slowdown.” “Nobody claims that there are no problems.”

The official website for his company S&P 500The year-end goal is 4,900. Kolanovic, however, speculated that the index might end the year somewhere around 4,800. That is the same as the Jan. 4 all-time record highs. Right now, the S&P is 16% below its record high.

“We don’t believe investors will keep cash in their pockets,”

Kolanovic explained that “we don’t believe investors will keep cash in the next twelve months. You know, waiting for this downturn.” We will continue to see. [the] consumer especially on the services side holding up — which we do expect — then we think investors will gradually come back into equity markets.”

Kolanovic is still the top call. energyThe group that he is bullish upon since 2019

Kolanovic stated that valuations actually fell despite stock price appreciation. Earnings increase faster so energy multiples are actually less than they were one year ago.

He is also bullish about small capsAnd high-beta technologyStocks that were crushed in this year’s market.