JPMorgan Advises Investors to Sell Crypto, Buy Value Stocks — Says the Fed Overestimates Strength of US Economy

The main planetary strategist of JPMorgan Asset Management has advised investors to absorption connected valuations, put successful worth stocks, merchantability crypto, and steer wide of bitcoin. “The Federal Reserve is overestimating the spot of the U.S. system arsenic it feels blameworthy astir the information that ostentation went up nether their watch,” helium said.

JPMorgan Strategist’s Recommendations

JPMorgan Asset Management’s main planetary strategist, David Kelly, has immoderate proposal astir what investors who are disquieted astir a hawkish Federal Reserve should put in.

Following the code by Federal Reserve Chairman Jerome Powell Friday astatine Jackson Hole, Wyoming, helium was quoted arsenic saying:

The system has got 1 ft into a recession and the different connected the banana peel now.

“We are taking forceful and accelerated steps to mean request truthful that it comes into amended alignment with supply, and to support ostentation expectations anchored. We volition support astatine it until we are assured the occupation is done,” Powell said past week.

Warning of much volatility ahead, Kelly emphasized that investors should absorption connected antiaircraft plays and valuations alternatively than short-term direction, specified arsenic investing successful worth stocks, long-duration bonds, and income-generating alternatives.

Recommending that investors merchantability crypto portion steering wide of large-cap tech stocks and bitcoin, the strategist advised:

Make definite you overweight U.S. and planetary value, arsenic good arsenic stocks with comparatively debased price-to-earnings ratio.

Citing a precocious hazard of recession, Kelly said the system volition “feel much normal” by the extremity of adjacent year. However, helium cautioned that the existent question is “how overmuch harm the Fed wants to inflict to this economy?”

The main planetary strategist of JPMorgan Asset Management further opined:

The Federal Reserve is overestimating the spot of the U.S. system arsenic it feels blameworthy astir the information that ostentation went up nether their watch.

Kelly besides said Monday that the U.S. system volition beryllium “wobbling connected the borderline of recession” until the Federal Reserve relents connected its combat to tame inflation. He expects the Fed to summation the national funds complaint to a scope of 3.75%-4% by the extremity of the year, from 2.25%-2.5% currently. “The Fed could past halt hiking and anticipation that the system volition conscionable debar recession,” helium described.

JPMorgan CEO Jamie Dimon warned earlier this period that “something worse” than a recession could beryllium coming. In June, the enforcement said an incoming economic hurricane, advising investors to brace themselves.

This week, Goldman Sachs urged investors to buy commodities and interest astir the recession later. The Goldman analysts stressed that “equities could endure arsenic ostentation stays elevated and the Fed is much apt to astonishment connected the hawkish side.”

What bash you deliberation astir the recommendations by JPMorgan Asset Management’s main planetary strategist? Let america cognize successful the comments conception below.