Benzinga
Published Dec 18, 2023 19:28
Updated Dec 18, 2023 20:40
S&P 500 Likely To 'Test The 5,000 Level': JP Morgan On Where To Allocate In 2024
Benzinga - by Surbhi Jain, .
For the first quarter of 2024, JPMorgan Chase & Co (NYSE:JPM) is for overweight U.S. equity, Japanese equity, U.S. Treasury and high-yield corporate debt. The company said “cash returns are set to fall” and the U.S. stock market would “likely see the S&P 500 test the 5,000 level in 2024.”
Read: 2024 Outlook: Put, Pause, Pivot
John Bilton, head of Global Multi-Asset Strategy at JPMorgan, and his team shared insights from the Multi-Asset Solutions Strategy Summit they had recently.
“We see positive U.S. stock performance broadening beyond tech as an improving U.S. inventory cycle boosts cyclical sectors,” said Bilton. “Japanese stocks remain attractive, given rerating potential driven by corporate governance reforms.”
Here’s a quick look at their perspective on each asset class and few trading ideas around them (added by author):
Rate cuts possibility in the U.S. further supports a US dollar underweight position.
Bilton is also underweight on cash. “Cash returns set to fall as cutting cycle begins; long-term USD rates likely nearer 2.5% than 5.5%,” he laid out.
Now Read: Goldman Sachs’ 2024 Equity Outlook: Winning Stocks And Sectors To Watch
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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