JPMorgan may have been wrong recently calling for an end to the rally in bitcoin (the cryptocurrency just hit a new all time high today), but it was correct in urging the bank’s clients to buy US equities, and especially to rotate out of growth and into value at the start of November, a month which saw a tremendous outperformance of beaten-down value and small cap names over the former tech and FAAMG meca-cap leaders.

Which is why today’s report laying out the bank’s 2021 Outlook report was especially notable: in it, for the first time in years, JPMorgan’s Croatian chief equity strategist Mislav Matejka cut his opinion of US stocks, downgrading the US to neutral while upgrading Europe to Overweight.

What is remarkable about this U-turn is that the downgrade takes place just three weeks after that “other” JPM strategist, Dubravko Lakos-Bujas, who also happens to Croatian (incidentally, so does Marko Kolanovic) upped his 2021 year-end S&P price target to as much as 4,500. So… on one hand stocks will soar almost 1,000 points, on the other hand, they are no longer worth of an Overweight reco.

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