The market is a bit oversold, Marko Kolanovic, JPMorgan's chief global market strategist, said on CNBC's "Fast Money Halftime Report."
The tech multiple is hurt by inflation expectations going higher and yields going higher. The stocks are now trading at their January levels, when there were around 250,000 COVID-19 cases per day, and earnings, the infrastructure bill and monetary support were unknown, Kolanovic said — so he sees the sell-off as overdone and said investors are panicking.
Kolanovic still likes cyclical, reflationary exposure, but he finds the overall market a bit oversold. He expects to see higher inflation and higher yields, but he said the market can absorb a 2% yield because the economy is strong and we are re-opening.
There are going to be rotations in the market, but overall it is going higher, said Kolanovic. He prefers inflationary-reflationary exposures and he has a target of 4,400 for the S&P 500.
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