Oil and stock prices are predicted by J.P. Morgan.
The U.S. economy is strong enough to handle high oil prices, according to the firm's chief global markets strategist.
The situation in Europe and the war could cause further spikes in oil. He told CNBC that they wouldn't be surprised. It could be a short-lived spike and eventually become normalized.
The price of West Texas Intermediate crude settled at $119.41 a barrel on Tuesday, its highest point in three months. The price of oil was at the $120.57 mark. The bullish move came as the city reopened after a two month Covid-19 lock down.
The consumer can handle oil at 130 to 135 dollars per barrel. That was the level. The consumer can handle that according to the man who has earned top honors for accurate forecasts multiple years in a row.
He believes that the U.S. and global economy will avoid a recession.
Jamie Dimon told investors at a financial conference last week that he was preparing for an economic storm which could be a minor one or Superstorm Sandy.
It's important to be prepared for all possibilities.
He said that they expected some slow down. No one is saying there are no problems.
His firm targets the S&P 500 to end the year at 4,900. The index is expected to end the year around 4,800, still on par with all-time highs, according to a recent note. The S&P is close to its all time high.
"We don't think investors will stick in cash for the next year or so, you know, waiting for the recession to happen." We think investors will gradually come back into equity markets if the consumer continues to hold up.
Since the beginning of the year, he has been bullish on the group of energy.
The stock price appreciation didn't affect valuations. The multiples are lower now because earnings grow faster.
Small caps and high-beta technology have gotten crushed this year, but he is bullish on them.
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