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JPMorgan says this stock market rally is not sustainable By

JPMorgan strategists anticipate that the tradeoff between economic growth and policy challenges will persist, impacting sentiment towards stocks as the year draws to a close.

“We believe that equities will soon revert back to an unattractive risk-reward into year end,” the analysts wrote in a note to clients.

The factors contributing to this outlook include the expectation of sustained high interest rates, downward adjustments in earnings projections, potential erosion of pricing power, threats to profit margins, and a continued slowdown in revenue growth.

The strategists also highlight that U.S. stock valuations appear unattractive when compared to Treasury real yields. Technical indicators do not suggest a bullish trend, implying that any market bounce may be short-lived.

“As the Fed is set to remain higher for longer at the short end, markets could start to price…

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