JP Morgan warns that if the Fed cuts rates it’ll be for the wrong reasons, stocks to fall

Hugh Gimber, international market strategist at JPMorgan Asset Administration spoke on CNBC (gated):

• believes Fed cuts in 2024 would doubtless coincide with declining company earnings, creating headwinds for shares
• “I believe the important thing level for me is that the rationale the Fed cuts subsequent yr is just not as a result of inflation has simply easily glided again to focus on. Quite, it’s as a result of we begin to see cracks within the progress outlook”
• “And that’s clearly not a really constructive state of affairs for equities, notably when you concentrate on what’s baked into earnings numbers”
• “You might have this disconnect in the intervening time: 12% earnings progress anticipated for subsequent yr and nonetheless the Fed anticipated to chop a number of occasions. These issues can’t each occur on the similar time”