Fake news "depresses" the markets - Kolanovic from JPM

News agencies bouncing off news news, political opportunists, and hungry for publicity analysts are pinning the markets to madness with everything that is beyond justifiable economic analyzes, foundations or statements. This is what Mako Kolanovic, an investment strategist at JPMorgan, is presenting.

Kolanovic is among the bank's analysts who forecast a target for 2019 at S & P500 at 31,00 points, a 18% growth. The last sell-off is "excessive" with the assessment of the risks of a potential recession.

"To a certain extent, we can trace the lost relationship between the negative sentiment and the macroeconomic reality and the relentless news stream of fake and negative news." - says the strategist.

"Political opposition may have an interest in depicting a negative economic picture Individual market analysts gain more publicity and reach more people with their negative arguments and foreign sources are additionally weighing in with negative news to incite divisiveness and loosen confidence in financial markets and the economy "- adds Kolanovic.

There are specialized sites that convey a mix of real and fake news on the conveyor. Sometimes, these sources will publish half their own financial research, intertwined with geopolitical news, and at the same time give voice and tolerance to the hate speech in their comments section.

Kolanovic says something very important: "Adding to this is the growing number of robots and algo trades, a trade based on these titles, the consequences on the investor's price and psychology may be dramatic."

There is also one factor that further aggravates the situation: Trump and his Administration.

The White House provides more than enough material (including tweets, etc.) for stakeholders to exploit to create an environment of insecurity.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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