JPMorgan’s quant guru says buy stocks as mass vaccinations drive the strongest GDP growth in 2 decades

JPMorgan’s quant guru says buy stocks as mass vaccinations drive the strongest GDP growth in 2 decades

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Investors should stay pro-risk and continue buying stocks as a synchronized global expansion takes hold thanks to mass vaccinations, JPMorgan's Marko Kolanovic said in a note on Thursday.On top of the rollout of COVID-19 vaccines, highly accommodative monetary and fiscal policy, fading risks, and moderate investor positioning should drive a favorable environment for stocks."We expect 2021 to deliver the strongest year of global GDP growth in over two decades," Kolanovic said.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Investors should buy stocks and remain risk-on as mass COVID-19 vaccinations help drive a period of synchronized global growth, JPMorgan analyst Marko Kolanovic said in a note on Thursday.

It's a favorable environment for risky assets right now, as risks related to President Trump's global trade war, the COVID-19 pandemic, and uncertainty tied to Brexit and US elections begin to subside, the note said.

At the same time, accommodative monetary and fiscal policy and moderate investor positioning leaves room for more upside in stocks.

"We expect 2021 to deliver the strongest year of global GDP growth in over two decades as mass vaccination permanently severs the link between the COVID-19 virus and economic activity," Kolanovic said.





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