The global head of quantitative and derivatives at JPMorgan Chase (JPM 1.44%) is reportedly telling clients that the stock market could rebound to normal levels sooner than people think.
Specifically, Chase strategist Marko Kolanovic said that he expects markets to rebound by 40%, and that they could even reach record levels by the beginning of next year, CNBC Pro reports.
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Kolanovic is so bullish is because he believes social distancing is working and that soon enough coronavirus will be a thing of the past.
"Over the next 10 days we will get into the month-end rebalancing period, which would prompt significant buying of equities," he wrote to clients, according to Yahoo! Finance. "The stark underperformance of equities vs. bonds MTD [month to date] leaves fixed-weight asset allocation portfolios about 4% underweight equities, which suggests they are likely to do a large rotation out of bonds and into equities to rebalance back to target weights."
Not all are on the same page with Kolanovic. Mark Vitner, a senior economist at Wells Fargo Securities, sees a much slower return to work.
"Economic activity will ramp up fairly slowly as supply chains will take some time to normalize," he said, according to Bloomberg.
The S&P 500 jumped more than 9% on Monday after news regarding the $2 trillion stimulus bill. The Dow Jones Industrial Average soared 11%, its best single-day percentage gain in 87 years.
