Investment Banks Clash on U.S. Stocks and Oil Prices.

JPMorgan advises investors to be underweight on stocks, particularly in the US, due to the risk of holding them and the availability of a risk-free alternative paying 5%. The strategists believe that stocks are set to weaken for the remainder of the year, with defensives trading better from here. They prefer international equities over the US, despite a rush into tech lately, and are overweight the UK, Japan, and the eurozone due to attractive valuations. The impact of monetary tightening has historically worked with a lag, and a sustained rally has never been seen before the Fed has stopped hiking.