JPMorgan: It’s time to buy stocks despite trade woes

Bloomberg

Now is finally the time to buy risk assets, with global stocks set to advance into the year-end, strategists at JPMorgan Chase & Co said. Positive technical indicators and monetary easing will likely outweigh the uncertainty of the US-China trade war and the “wild card” of developments in tariff negotiations, according to JPMorgan.
After August’s sell-off, the strategists signalled that the time to buy stocks was approaching, and today finally acted on their impulse. JPMorgan joins others on the sell-side like Bank of America Merrill Lynch, which said it’s bullish on risk assets for 2019.
“We now advise to add risk back again, tactical indicators have improved,” JPMorgan strategists led by Mislav Matejka said in a note to clients. “Admittedly, the next trade move is the wild card to all of this, but we think that the hurdle rate for any positive development is quite low now.” The MSCI World Index tumbled 2.2 percent last month, posting the second monthly decline of this year, as an escalation in the US-China trade spat sent traders into a profit-taking mode.