Stocks Overvalued JPMorgan Strategist Warns

JPMorgan Strategist Warns US Stock Market Rally May Be Overdone

• The S&P 500 index has recovered losses since tariffs were imposed on April 2nd.
• David Kelly believes the recent stock market rally is exaggerated.
• Kelly notes the US still has higher tariff rates than before.
• He suggests that international equities may offer better returns than US stocks.
• The US equity market’s premium over international markets may not be justified.

David Kelly, chief global strategist at JPMorgan Asset Management, cautions that the current US stock market rally might be excessive due to ongoing economic challenges and suggests international equities could provide better returns. He highlights that despite a recovery in the S&P 500, higher tariffs remain and question the justification for the US equity market’s premium.