economy
JPMorgan trading desk is bullish despite failed Iran talks
Stocks are set up to do well near term despite U.S.-Iran talks failing over the weekend, according to JPMorgan traders.
TL;DR
- JPMorgan traders are tactically bullish on markets despite failed U.S.-Iran talks.
- Positive factors include potential extension of ceasefire or agreement, normalization of Strait of Hormuz supply, resilient macro economy, strong earnings, and declining net tariffs.
- Monday's early declines are seen as a potential buying opportunity.
- Risks include escalation of conflict, weaker-than-expected earnings, and a spike in bond yields.
- The trading desk recommends small caps, tech, and cyclical stocks.
- Some "Magnificent Seven" tech stocks are considered undervalued.