Zero Hedge: For the past two years, JPMorgan’s head quant and resident permabull, Marko Kolanovic, has been periodically predicting an imminent rotation out of growth and into value stocks (a rotation which had failed to take hold until earlier this year when we finally saw some glimmers of value outperformance).
“Come now, you rich, weep and howl for the miseries that are coming upon you.” James 5:1
Most recently, Kolanovic predicted in February that March would see a major move higher in commodity names as vol-control funds and CTAs started buying up commodity and reflation-linked stocks on the 1 year anniversary of the covid crash only to see the energy sector slump in the next two months.
Fast forward to today when in his latest attempt to time the biggest market rotation of all, the Croat published a note titled “Positioning for Inflation”, in which he predicts – you guessed it – a “rotation towards reflation, inflation, rising yields and reopening themes” and not only that but apparently the coming inflation surge will be such a surprise to most of today’s portfolio managers that they will scramble to reposition their portfolios for “the risk of more persistent inflation” (“persistent“ as in the opposite of “transitory“).
He might just be right this time. Read More