S&P 500 Approaches JPMorgan’s Year-End Target Amid Expected Volatility

Marko Kolanovic of JPMorgan Chase maintains his bearish perspective on the stock market as the index approaches his anticipated year-end target of 4,200, currently trading around 4,260.

Kolanovic expects increased market volatility due to the Federal Reserve’s elevated interest rates and the fluctuations in the Cboe Volatility Index, reminiscent of the period leading up to the 2008 financial crisis.

Despite a notable 16% rally in the S&P 500 this year, Kolanovic predicts a potential retreat by investors. This outlook is influenced by the tight monetary policy from the Federal Reserve, rising geopolitical tensions, and ongoing reductions in equity allocations.

Although the S&P 500 has performed strongly in 2023, Kolanovic’s stance suggests that investors should prepare for possible market upheaval. His predictions are largely based on parallels he draws between the current environment and conditions prior to the 2008 crisis.

Despite the market’s resilience amid various challenges this year, Kolanovic’s bearish view highlights potential risks that could curtail the upward momentum. His forecast serves as a caution for investors to stay alert to market conditions and economic indicators that could indicate shifts in the investment landscape.

This article was generated with the support of AI and reviewed by an editor.