JPM recommendations: a group of JPMorgan analysts headed by Marko Kolanovic believes that investors should sell U.S. stocks and take profits now, because the current market rally will soon come to naught, writes Business Insider.

They said the stock market will face several challenges this year due to Fed policies and weak corporate earnings. The group of analysts said the risks of a recession and excessive monetary tightening remained high.

JPMorgan stock recommendations – what should investors do?

They said in a research note that all the positive catalysts that drove the stock market higher have gone unnoticed, while companies are reporting weaker earnings than investors expected.

“We remain cautious on risky assets because the risks of recession and over-tightening remain high, and we think there is a lot of good news in terms of slowing inflation or soft landing potential in stock prices as it is,” Colanovich said.

And even if inflation continues to decline, as it has for several months, ongoing labor market tensions could take a hit that lowers corporate profits and forces the Fed to continue tightening monetary policy.

Earlier, we reported that U.S. stock indexes were down 0.8-1%.