Marko Kolanovic, JPMorgan's Prominent Market Strategist, Announces Departure Amidst Mixed Market Forecasts

Marko Kolanovic, Wall Street's most bearish strategist, is leaving JPMorgan after nearly two decades. Kolanovic, known for his bearish stance during the 2022 market decline and cautiousness in the recovery, will pursue other opportunities. Hussein Malik will lead global research, while Dubravko Lakos-Bujas takes over as chief market strategist. The reorganization includes Steve Dulake and Nick Rosato as co-leads of fundamental research.

Marko Kolanovic, the well-known bearish strategist at JPMorgan Chase & Co., is leaving the investment bank after nearly two decades, according to internal memos obtained by MarketWatch [1]. Kolanovic, who has been known for his cautious stance during market declines and bullishness in recoveries, will pursue other opportunities.

Hussein Malik, the former co-head of global research alongside Kolanovic, will take over as the sole head of global research at JPMorgan. Dubravko Lakos-Bujas, who was previously the chief equity strategist, will become the bank's new chief market strategist and lead its markets strategy group [1].

Steve Dulake and Nick Rosato will co-lead fundamental research, which brings credit and equity research under one leadership structure [1]. Kolanovic's departure follows a two-year stretch of disappointing market calls that saw him remain bullish as stocks tumbled in 2022, only to turn bearish just as the market started to recover during the fourth quarter [1].

Since the start of 2024, Kolanovic had maintained a year-end S&P 500 target of 4,200, which was the lowest among major Wall Street banks by a considerable margin [1]. His replacement, Lakos-Bujas, has favored large-cap growth names that have contributed an outsize share of the S&P 500's advance over the past year [1].

However, Lakos-Bujas has recently warned the bank's clients that the index's increasing dependence on megacap and momentum names could make it vulnerable to a pullback [1]. It remains to be seen whether JPMorgan will revise its year-end S&P 500 target following Kolanovic's departure.

References:
[1] https://www.marketwatch.com/story/jpmorgans-top-strategist-marko-kolanovic-is-leaving-after-missing-stocks-historic-rally-69f88bca