Contrary to the popular perception, JP Morgan rejects recession fears while expecting an economic rebound in the second half of the year (H2 2022).
“It is not that we think that the world and economies are in great shape,” mentioned JP Morgan.
The US bank not only expects a 3.1% growth rate during the H2 2022 but also expects the inflation to ease to 4.2%.
The same, “Would allow central banks to pivot and avoid producing an economic downturn,” said JP Morgan in its latest report.
The note also mentioned that but just that an average investor expects an economic disaster, and if that does not materialize risky asset classes could recover most of their losses from the first half.
Also read: How on earth the stock market can have sentiment so far divorced from reality?