JPMorgan Chase & Co. Strategists Recommend Holding Cash U.S. stock investors are expected to face a lose-lose situation next year

Marko Kolanovic, chief market strategist at Gen Chase, believes that investors in the U.S. stock market will face a lose-lose situation next year. He believes that the potential rally in equities and other risk assets will not last unless the central bank cuts interest rates aggressively, but he expects the central bank to cut rates only if the market falls sharply or the economy stalls. As a result, he said, investors should choose cash or bonds rather than stocks. He believes that even in the most optimistic economic scenarios, equities will outperform bonds or cash by only about 5%, and in an environment of slowing economic growth or recession, equities could underperform cash by about 20%.