Wall Street Bear Turns Bullish on Stocks After 2-Year Downturn

In what is certainly an optimistic development, one of the biggest Wall Street bears has officially turned bullish on the stock market after what was a 2-year downturn. Indeed, JPMorgan strategists have reversed course on stocks for the first time since turning bearish in October 2022.

The financial institution’s chief global equity strategist, Dubravko Lakos-Bujas, signaled a shift in a Tuesday research note. In the note, Lakos-Bujas urged a shift away from a bearish extreme for stock investors. The development could be indicative of optimism arising for an impending shift within the market.

Also Read: Marjorie Taylor Greene Buys US Stocks & Treasury Bills Worth $220,000

JPMorgan Strategist Signaling a Reversal to 2-Year Bullish Stance?

The global economy looks to be finally making a notable turnaround. In the United States, inflation continues to fall, dropping to 2.5% in September and driving closer to the Federal Reserve’s 2% target. Meanwhile, China is set to introduce new stimulus measures to give its economy a much-needed boost.

All of that has driven one notable entity to change its tune. Indeed, one of the top Wall Street bears has turned bullish on stocks after a 2-year downturn. Specifically, JPMorgan has signaled that it is altering the bullish sentiment that it has held firm to since late 2022.

Also Read: US Stock: Here’s How High Tesla (TSLA) Share May Rise By Mid October

“We are neutralizing our long defensive and short Cyclicals views,” the firm’s chief strategist said. However, Lakos-Bujas did not alter JPMorgan’s year-end price target for the S&P 500 from its 4,200. That signals the expectations of a stark 27% drop. Yet, they did call for increased bullish sentiment to arise.

“Policy support from the world’s largest economies are coming at a time of surprisingly resilient US growth with tight labor markets, ongoing government deficit spending, and record highs across equities, credit, and housing,” Lakos-Bujas wrote in a Tuesday note.

Additionally, the firm noted the importance of healthy US consumers. Since the outbreak of the COVID-19 pandemic, those individuals have added $50 trillion to their wealth collectively, according to a Federal Reserve report. That could be poised to have a notable bullish impact on the stock market as the November election nears.