JPMorgan’s Michele Warns on Risk Rally as 2023 Recession Certain
- Veteran strategist sees junk spreads above 800 basis points
- He says investors are cleaning portfolios to get rid of risk
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Investors enjoying the recent rally in the riskier corners of the market may want to listen to a warning from Wall Street veteran Bob Michele before starting their weekend.
“In the next quarter, we could see risk assets rally. You could have a feel-good period and then the reality catches up,” the chief investment officer of fixed income at JPMorgan Asset Management told Bloomberg Television Friday. “If we’ve been taught anything this month, you may see it coming, you may not, you don’t know exactly where it’s going to hit. But once it hits, whatever you own, you own.”