The U.S. stock market soared to a new record high over the past week, but there may still be trouble on the horizon, according to JPMorgan analysts.
The forecast from JPMorgan's chief market strategist Marko Kolanovic is one of the most pessimistic on Wall Street. He and his peers see the S&P 500 ending the year at 4,200 – the lowest year-end target among major Wall Street banks. From current levels, that implies a more than 21% drop.
"With very high equity valuations, we do not see equities as attractive investments at the moment, and we don't see a reason to change our stance," Kolanovic wrote in an analyst note this week.
