Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.Marko Kolanovic will go away his position as JPMorgan’s chief world markets strategist, ending a 19-year stint that culminated in a sequence of mistimed calls on the US inventory market.Kolanovic, additionally the financial institution’s co-head of worldwide analysis, was among the many few bearish strategists left on Wall Road, having lately forecast that the S&P 500 would tumble by virtually 25 per cent from present ranges by year-end.As soon as dubbed “the person who strikes markets” by CNBC and “Gandalf” by Bloomberg, Kolanovic’s star has fallen in recent times on a sequence of contrarian and in the end mistimed calls on the route of the S&P 500. Two years in the past he suggested purchasers to take an obese place in US shares through the deep market sell-off, earlier than switching to recommending an underweight place in early 2023. The financial institution has caught with that place ever since, regardless of the blue-chip index having surged greater than 40 per cent since then. Kolanovic — who graduated from New York College with a PhD in theoretical high-energy physics and went on to work at Bear Stearns and Merrill Lynch earlier than becoming a member of JPMorgan — will now be “exploring different alternatives”, in line with an individual conversant in the state of affairs. Kolanovic didn’t reply to a request for remark.Hussein Malik will change into sole head of worldwide analysis, having beforehand been co-head of the division with Kolanovic, a spokesperson for the financial institution stated. Dubravko Lakos-Bujas, JPMorgan’s chief world fairness strategist, will now lead markets technique in a brand new position encompassing equities, cross-asset and macroeconomic analysis. Steve Dulake and Nick Rosato will co-lead “basic analysis”, a newly branded crew that brings credit score and fairness analysis beneath one management construction, the financial institution confirmed.A JPMorgan biography shared with the Monetary Instances praised Kolanovic for his “well timed and correct short-term forecasts of inventory market returns”, noting that he was inducted into the Institutional Investor Corridor of Fame in 2020 “following 10 consecutive years of #1 rankings”.He and different JPMorgan strategists reiterated their bearish outlook in a observe to purchasers final week, highlighting what they describe as an “terrible” lack of breadth within the US inventory market.“Since final 12 months, we now have argued {that a} soft-landing final result [for the US economy] can be tough to engineer. As an alternative, a no-landing can be extra doubtless with higher-for-longer charges till progress surrenders to restrictive financial coverage and softening macro backdrop,” the crew wrote in late June. Regardless of their choice for high-quality, large-cap shares, the crew admitted that they had “under-appreciated the resiliency of [the Magnificent Six] when it comes to worth momentum and earnings revisions”, in a reference to the handful of shares which have pushed the overwhelming majority of the S&P 500’s current good points. The index this week rose to a contemporary all-time excessive. The S&P 500 equal-weighted index, nonetheless, is basically unchanged over the previous two-and-a-half years, whereas the small-cap Russell 2000 has added simply 0.3 per cent in 2024.