JP Morgan believes the economic recovery is in its early stages and transitioning towards mid-cycle, suggesting continued growth potential for the market.
"our research suggests that the recovery is still an early cycle and gradually transitioning towards mid-cycle"
The rapid activity of dip buyers suggests that a full 10% stock market correction is unlikely to occur.
"dip buyers have stepped in very quickly and bought very quickly and that's one of the reasons we haven't had a full 10 correction and frankly I don't think we'll have one this time either for that reason"
Inflation is expected to be temporary, with prices potentially decreasing once supply chains normalize and the labor market eases.
"inflation could very well be transitionary like the FED says that means that once Supply chains start working again in the labor Market starts easing up then prices might start coming down"