JPMorgan Says Stocks, Credit Still Haven't Priced Fed Pivot
- Stocks, corporate debt have some upside room yet: strategists
- Money markets by contrast front-loaded a Fed pause: JPMorgan
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While U.S. stocks and corporate debt have rallied from their December lows, there’s scope for further gains from an official Federal Reserve confirmation that it’s pivoting away from monetary tightening for now, according to JPMorgan Chase & Co.
“While we share almost every reservation about limited upside when the Fed pauses late-cycle, we still think that stable policy for another several months isn’t fully in the price of markets outside of Treasuries,” John Normand, head of cross-asset fundamental strategy, wrote in a Jan. 25 note.