JPMorgan Strategist Kolanovic: Full impact of tightening in 2024

According to JPMorgan's star strategist Marko Kolanovic, the effects of the aggressive monetary tightening campaign by global central banks will be felt throughout almost all of 2024.

In a note published on Monday, Kolanovic stated that financial conditions have been tightening since the beginning of 2022, and while the pace has slowed, the tightening will continue and show its full impact for the better part of 2024.

Noting that it typically takes 1-2 years for the impact of tightening financial conditions to be seen on gross domestic product, Kolanovic argued that the effects of last year's heavy tightening have not yet been experienced.

Stating that the strengthening dollar is putting pressure on stocks globally, Kolanovic indicated that he continues to prefer defensive stocks and energy companies.