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☆ Three reasons why JPMorgan’s Kolanovic believes market downside is limited from here
▼ + stars: | 2022-09-19 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

JPMorgan's Marko Kolanovic believes the market sell-off won't get much worse than this as Wall Street's top strategist found three big reasons to stay optimistic. Still, Kolanovic, one of the biggest bulls on Wall Street, reassured his clients that downside should be limited because of resilient earnings, low positioning and anchored inflation expectations. Kolanovic gained a wide following after correctly calling the March 2020 market bottom and the subsequent rebound during the pandemic. The strategist believes that high inflation and robust nominal GDP growth are cushioning nominal earnings growth in an environment of low real growth. Meanwhile, retail and institutional investors are poised to add back equities after being underweight for a few months, Kolanovic said.

Investors' focus on the Fed's policy rate is understandable, but they should not underestimate how much the Fed's other policy lever - quantitative tightening - could tighten financial conditions and crush asset prices even further. chartBut as the wild post-pandemic gyrations in markets, economic activity, inflation, and policy have shown, no one really knows. Are markets ready for QT to kick in as well? "Fed QT training wheels are off. He estimates that every $100 billion of QT is the equivalent to a 12 bps increase in the policy rate.

☆ A top stock picker at $10 trillion BlackRock shares 3 places to invest now to beat soaring inflation and recession risks
▼ + stars: | 2022-09-16 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

According to Tony DeSpirito, inflation and recession risks are the biggest threats to stocks. According to Tony DeSpirito, investors today face a two-pronged set of major risks to their portfolios: inflation and recession. The Energy Select Sector SPDR Fund (XLE) offers diversified exposure to energy stocks, while the Vanguard Financials ETF (VFH) offers exposure to the financials sector. According to BlackRock's Ben Bei, a product strategist on the firm's Active Equity Group, healthcare stocks have performed well in prior recessions. Alongside healthcare, DeSpirito recommended keeping some cash on the sidelines as markets continue to digest inflation and the risk of monetary tightening.

☆ Wells Fargo downgrades two fintech stocks, says Powell's 'pain' commentary spells trouble for the sector
▼ + stars: | 2022-09-08 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Comments from Federal Reserve Chairman Jerome Powell at the central bank's annual symposium in Jackson Hole, Wyoming, could put a damper on some fintech stocks going forward, according to Wells Fargo. The downgrades from Wells Fargo comes as markets anticipate a more hawkish Federal Reserve ahead with another big hike expected when the central bank convenes later this month. The central bank's continued aggressive approach to taming inflation means rates could stay higher for longer, which will impact profitability for fintech stocks, Cantwell noted. He said that the bank anticipates a 140 basis-point headwind to revenue growth over the next 12 months across its coverage. Wells Fargo trimmed its price target on Fidelity National to $88 a share, which implies a 3% downside from Wednesday's close.

☆ Here are 3 ways we inflation-proofed our portfolio in this baffling stock market
▼ + stars: | 2022-08-03 | by ( Paulina Likos | ) www.cnbc.com time to read: +11 min

We hold energy companies because of their ability to generate strong free cash flows and return money to shareholders. But we readily admit we should have trimmed some of our positions much earlier when oil prices peaked. If energy prices fall, our energy stocks may get hit, but our holdings that are currently experiencing margin pressure due to high energy prices will get some relief. Remember, even if our energy stocks go down, they're paying us in dividends and buybacks to hang tight. And if production can't keep up with demand, oil prices go back up, which serves oil and energy companies well.

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