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JPMorgan: Investors should rotate into these sectors with GOP tax plan

With the Republican tax design headed to the bicameral conference committee, JPMorgan is encouraging investors to put to rights some tweaks to their portfolios.

A reduced corporate tax rate kidney that proposed in the GOP tax plan may be just the type of catalyst the market needs to suggestion rotation into value and away from growth stocks, harmonizing to strategist Dubravko Lakos-Bujas.

“We viewed the U.S. Tax legislation as the most significant upside catalyst for equities stated the market was underpricing the probability of passage,” explained Lakos-Bujas in Monday’s note to customers. “While the tax trades have been gradually moving higher since the Contain passed its bill mid-November, the rotation across styles, sectors, and specialized portfolios accelerated on legislative advance last week. In fact, some of the moves appeared panicked.”

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