“Stocks Drop 20% If Bonds Have Inflation Right in JPMorgan Model”
June 9, 2023
“The widening disconnect between stocks and bonds suggests a 20% downside risk for equities if bonds are proved correct in pricing inflation volatility, according to modeling by JPMorgan Chase & Co. strategists…
JPMorgan’s view highlights how much investors across different asset classes are struggling to make sense of the market landscape since the pandemic… Investors have also been blindsided in the currency market as the dollar has largely maintained its strength, going against expectations for the greenback to lose momentum as the Fed’s tightening cycle peaks…
At the same time, instead of becoming a growth driver in Asia after pandemic restrictions ended, Chinese stocks tanked and entered a bear market…”
https://finance.yahoo.com/news/stocks-drop-20-bonds-inflation-031720901.html
So the market is in a state of confusion? At this point I think it’s better to save cash and wait for the right opportunity. That seems like the better play that this point considering how the market is doing nothing but trending downward.