The fundamentals of the US economy and corporate earnings remain sound, but the US market may continue to fluctuate over the next two to three weeks. While indices may not necessarily see a significant correction, more volatility is likely at the sector and individual stock levels. Therefore, JPMorgan Chase recommends reducing net long positions and considering a dollar-neutral or market-neutral strategy, minimizing the impact of overall market fluctuations on the portfolio. Two key external variables need to be monitored in the short term: first, whether an agreement can be reached between the US and Iran, or whether the conflict continues to push up oil prices; and second, whether the trade dispute between the US and Canada will escalate further. (The above views are from a JPMorgan Chase report dated September 8th.)
