JP Morgan’s market guru says his ‘once in a decade’ trade is upon us

KEY POINTS
- Marko Kolanovic, head quant at J.P. Morgan, says extreme divergences in the market have led to the move in value stocks and that trend should continue.
- The strategist also says there is an extreme divergence between small and large cap stocks, seen only one other time during the tech bubble, in February, 1999.
- Given the rotation trade, Kolanovic expects more upside potential in small caps, cyclicals, value, and emerging market stocks than the broad S&P 500.
- In July, the strategist said the rotation into value stocks was setting up for a ‘once in a decade’ opportunity.

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Marko Kolanovic

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