JPMorgan Trading Department: U.S. stocks may be corrected in the near future and optimistic about bargain hunting opportunities
Internet reports that as geopolitical tensions heat up and put pressure on U.S. stocks, JPMorgan's trading department said that a potential correction in the future will bring buying opportunities, and the reasons for bullish U.S. stocks in the longer term are still in place. Traders led by Andrew Tyler, head of global market intelligence, shifted from tactical bullish U.S. stocks to cautious, but said the increased possibility of a correction would create a "bargain hunting" moment. Suggestions are made to adopt a defensive bias, including long U.S. stocks such as the seven technology giants, metals and mining, health care, and aerospace and defense-related stocks. "Given the rapidly changing geopolitical situation and the looming expiration date for trade agreements," they wrote. "It looks like the market is set to undergo a correction in the short term." Assuming that longer-term tariff mitigation is still underway, the bullish case still holds. But caution is advised until it becomes clearer about U.S. involvement in the Middle East.
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