With bank after bank after bank piling on with warnings that the market is due for a substantial setback to ease some of the retail euphoria (without realizing that said euphoria will merely shift to squeezing the most shorted stocks), Wall Street was in desperate need of some cheering up. Today, one of Wall Street’s biggest permabulls, did just that when JPM’s Marko Kolanovic urged investors to ignore warnings about a bubble – despite clear evidence of a bubble everywhere one looks – and to just buy the dip on any fallout from the feud between retail investors and hedge funds.

Conceding that we have “seen a number of strategists calling for a market correction or indicating equities are in a bubble” coupled with recent “turmoil related to trading activity in small highly shorted stocks” the JPM quant disagrees and said that professional investors are far from bullish, as the firm’s model tracking computer-driven strategies to stock-picking funds shows their equity positioning sat in the 30th percentile of a 15-year range (which, of course, is for a reason namely the fact that the VIX remains remarkably sticky and vol control strategies simply can not lever up to historical levels, but we don’t expect Kolanovic to dwell too much on what’s really going on if there is an agenda to be promoted).

According to the Croat, there are 3 main reasons for the firm’s (perpetually) rosy outlook:

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