In a new report, JPMorgan analyst Marko Kolanovic weighed in on the current environment for equities, gold and oil, and discussed the options that central banks have moving forward.

Kolanovic sees sentiment deterioration and fundamental selling from hedge funds, pensions, wealth funds and retail as the biggest near-term risks to the S&P 500. He sees elevated volatility, deleveraging, rotation out of momentum stocks and weak market sentiment as headwinds as well.

While the SPDR S&P 500 ETF Trust SPY 1.45% is down 9.3 percent year-to-date, the SPDR Gold Trust (ETF) GLD 1.78% has surged 16.6 percent so far in 2016, and the iPath S&P 500 VIX Short Term Futures TM ETN VXX 5.7% is up an incredible 44.2 percent.

Kolanovic noted that JPMorgan has been advising investors to increase their exposure to gold, cash and volatility since late 2015. He believes that gold will continue to benefit from global recession concerns.

Finally, Kolanovic added…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!