Kolanovic Thinks Oil Rally Ahead, Tempers Bear Market Call On CNBC

JPMorgan’s quant guru, Marko Kolanovic, is tempering his previously bearish statements and more vocally advocating a relative value mean reversion trade between oil and the U.S. equity markets.

Kolanovic recommends a relative value trade

Speaking on CNBC’s “Fast Money” with Melissa Lee late last week, Kolanovic said the forthcoming market decline is not going to be as sharp as August, 2015. On the show he clearly advised investors to take a relative value position, buying oil and nonetheless selling equities, placing a sharper point on the relative value trade relative to his most recent note to investors. He thinks oil...