JP Morgan's analyst recommended buying U.S. stocks after the fall this week
Marko Kolanovic, an analyst of JP Morgan Chase Bank, who is an expert on the market of derivatives and algorithmic trading (Quantitative trading), said that now it is a good time to buy back shares while such a decline is hapening in the stock market. He argues that the market crash on Thursday occurred due to the risks of a second wave of pandemic and social unrest.
Hedge funds, which refrained from selling out the day before, may become a potential source of demand for stocks. Funds that buy on the trend may also start buying soon if the volatility remains close to current levels.
JP Morgan expert estimates the low probability of resumption of restrictive measures, even if there is a second wave of coronavirus infection.
Kolanovic predicts that the S&P 500 index will renew its record high in the first half of 2021. The expert recommended to buy shares that look underestimated by multipliers in terms of profit or book value. He gives preference to cyclical shares - banks that will benefit from a restart of the economy after a lockdown.