Market Insider

JPMorgan strategist is positive on stocks, but points to a reason to be cautious

A trader claps on the floor of the New York Stock Exchange (NYSE) at the close of the day on July 8, 2015 in New York City.
Spencer Platt | Getty Images

Investors should take a positive view on stocks, while remaining cautious that inflation could pick up too quickly, JPMorgan Asset Management strategists said.

"Overall, we're really optimistic on the outlook. (If) we overdo the stimulus, the economy overheats and the Fed, as usual, reacts too late," then a traditional boom-bust market could about in 2018, David Kelly, chief global strategist at JPMorgan Asset Management, said Tuesday at a media briefing. "The biggest risk is we overheat and over-tighten."

"So long as rates move up slowly, the Fed raises rates slowly, the bull market continues on," he said.