JPMorgan strategist Dubravko Lakos-Bujas anticipates that U.S. stocks will climb in the final phase of 2024, especially if the presidential election results in a political deadlock. He noted that once uncertainties are alleviated and market volatility decreases, investors will refocus on the Federal Reserve amid resilient economic and corporate earnings.
Following Marko Kolanovic's departure this summer, Lakos-Bujas has taken over the management of JPMorgan's market research team. He suggested that a Republican victory could be particularly favorable for risk assets by year-end. However, ongoing uncertainties around policy implementation might pose challenges for investors in 2025.
On the contrary, Lakos-Bujas views a Democratic sweep as potentially negative for the market, although he believes this scenario is less likely. As the year-end approaches, he highlights a key risk of a significant rise in the yield curve. Additionally, there is optimism that the S&P 500 could reach 6100 points driven by "fear of missing out."
