JPMorgan Say "Underweight Stocks," FMHR Traders Disagree

JPMorgan says it's time to underweight stocks saying, "the fundamentals of growth, earnings and recession risk have not improved, and if anything have worsened." However, the FMHR traders on CNBC say JPMorgan is wrong, stating that recent economic data points to a strong economy and recession is off the table. They like stocks albeit they are not going way high as there is no case for premium valuation. The traders said that the CBOE volatility index shows that investors can buy any equity that they want and can easily hedge them. They say that 14 is the base level. Since, the index currently stands at around 17, it is a nice entry point. The CBOE Volatility Index (VIX) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. VIX has been considered as the premier barometer of investor sentiment and market volatility. Dow is up 0.07 percent at 16,928 points, and S&P 500 gained 0.14 percent at 1,991.56 points. But, Nasdaq is down 0.14 percent at 4,703.78 points.