JPMorgan's head of US equities on the dollar, market volatility, and where investors should put their money in 2017

pulse

February 10, 2017 4:52 PM

'If anything, at the end of the day, the fear factor may have been elevated, but markets turned out to be fairly resilient.'

null

Business Insider recently caught up with Dubravko Lakos-Bujas, the head of US Equity Strategy at JPMorgan.

In the interview, Lakos-Bujas discusses dollar strength, market volatility and where investors should put their money in 2017.

This interview has been edited for clarity and length.

Tina Wadhwa:

Dubravko Lakos-Bujas:

Wadhwa:

Lakos-Bujas:

Clearly we had a very early call on that, and we basically came out with with a tactical S&P price target of 2300 that we thought we were going to reach in early 2017. We came out with that the day after the US election. That’s the more immediate effect that we thought could take place as the market starts to price in some of these proposals and a more pro-business agenda.

There’s a lot of uncertainty so it’s hard to quantify things that precisely, but generally our view is net net constructive and we have reached this first leg up on the market. It took place relatively quickly pricing in some of these things in anticipation. What I think you’ll likely see now in the coming months is some elevated degree of volatility and elevated degree of dispersion across stocks and across industries as the market basically starts to gradually digest a lot of the views coming out. I would say in the coming months you’ll see a lot of potential volatility, and later in the year, some further small upside, so our 2017 price target is 2400.

Wadhwa: Given the uncertainty you speak of, h

Lakos-Bujas:

Wadhwa:

Lakos-Bujas:

Wadhwa:

Lakos-Bujas:

Wadhwa: Dating back to 1910,h

Lakos-Bujas:

Wadhwa:

Lakos-Bujas:

Wadhwa:

Lakos-Bujas: