JPMorgan’s Kolanovic Says Market Bubble Corrections Almost Done

(Bloomberg) –The rout in tech, biotechnology and emerging markets stocks may be nearly over and it’s time for investors to start adding to beaten-down, high-beta positions, according to JPMorgan Chase & Co. strategist Marko Kolanovic.

• “While the commodity supercycle will persist,” the strategist writes, “the correction in bubble sectors is now likely finished, and geopolitical risk will likely start abating in a few weeks’ time (while a comprehensive resolution may take a few months).”
• He sees “great opportunities in high beta, beaten down segments that now include innovation, tech, biotech, emerging markets,” where the risk of a global recession is priced in though that’s something Kolanovic has been saying won’t happen
• The Nasdaq 100 Index closed in a bear market on Monday, though the tech-heavy benchmark has bounced back since the first of several anticipated rate hikes, the index is now down ~16% from its November record