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Wall Street sell-off is actually being caused by warped expectations vs reality, says JPMorgan strategy boss


Published on 2025-03-18 07:21:07 - Fortune
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  • While some investors may be watching the headlines and wringing their hands, those bullish on the U.S. are seeing the downturn as an opportunity. BlackRock CEO Larry Fink, for example, said he views current market conditions as a chance to snap up stocks at a reduced rate.

The article from MSN Money discusses insights from JPMorgan's strategy head, Marko Kolanovic, who attributes the recent Wall Street sell-off to a misalignment between market expectations and economic reality. Kolanovic points out that despite positive economic indicators like a robust labor market and consumer spending, the market has been overly influenced by fears of a recession, high inflation, and potential rate hikes. He argues that the market's reaction has been exaggerated due to these "warped expectations," particularly around the Federal Reserve's monetary policy decisions. He suggests that while the Fed might pause rate hikes, the market's anticipation of immediate rate cuts is unrealistic, contributing to the volatility. Kolanovic also highlights that the market's focus on negative news has overshadowed the underlying economic strength, leading to an unnecessary sell-off.

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[ https://www.msn.com/en-us/money/markets/wall-street-sell-off-is-actually-being-caused-by-warped-expectations-vs-reality-says-jpmorgan-strategy-boss/ar-AA1B4TWG ]