JPMorgan says ‘froth’ is accumulating in stock market

JPMorgan’s Global Head of Macro Quantitative and Derivatives Strategy Marko Kolanovic says earnings projections for 2024 are coming down and the market “appears too complacent on the cycle.” The strategist believes stocks continuing to push to new record highs and bitcoin surging over $60,000 “may indicate accumulating froth in the market.” This may keep monetary policy higher for longer, as premature interest rate cutting risks further inflating asset prices or causing another leg up in inflation, the strategist tells investors in a research note.