There have been huge sector challenges for technology, biotech, emerging markets and growth stocks over the past two weeks, but JPMorgan says it’s time to get bullish on those beta positions. Analyst Kolanovic said these equity sectors stand to benefit as many of the geopolitical risks and macroeconomic pressures are set to ease. The JPMorgan analyst estimates that there will be little inflation and that the United States will avoid a recession. Biotechnology has been shot since last August, when the Nasdaq Biotech index peaked; it is now at 75% of its previous peak.
Final sum: The Fed’s projections could be bad for tech stocks as higher interest rates diminish the relative value of tech earnings.
- JP Morgan
- bear market
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