JPMorgan's Marko Kolanovic Predicts 20% Market Plunge and Recession Warning

JPMorgan's Marko Kolanovic, the firm's chief market strategist, is warning of a potential 20% market plunge in the S&P 500 due to high interest rates. He suggests that investors consider holding cash as a protection strategy. Kolanovic believes that staying at the current level of interest rates could lead to a recession. While he doesn't anticipate an immediate sharp pullback, he warns that the "Magnificent Seven" stocks, including Apple, Amazon, Meta, Alphabet, Nvidia, Tesla, and Microsoft, are particularly vulnerable to steep losses. Kolanovic also highlights the stress on consumers, citing delinquencies in credit cards and auto loans.