The JPMorgan chief market strategist nicknamed “Gandalf” who left the bank last month after criticism that he was too bearish wants you to know he was right all along.
Marko Kolanovic, officially in between jobs since August, has taken to social media for the first time in years to spread word that the correction he foresaw this year is now playing out just as the theoretical physicist-turned-investment banker anticipated.
Posting links to articles from Bloomberg, the Financial Time markets blog Alphaville as well as European business dailies Handelsblatt and El País, Kolanovic’s message—even if he didn’t spell it out—was crystal clear: he was one step ahead of Wall Street yet again.
“Big thank you for everyone who reached out, for all kind messages and support," he posted on LinkedIn on Monday. adding people could now follow him on X via the handle @markoinny.
Since his departure at the start of July, the benchmark S&P 500 index dropped nearly 7% in the course of one month amid a confluence of factors. This included fresh recession jitters following the July unemployment report as well as a sharp appreciation in Japan’s currency that forced hedge funds to unwind their yen-funded carry trade.
Best inverse indicator was Marko Kolanovic getting fired from JPMorgan Chase as the last bear on Wall Street. Literally marked the top on the market. He will end up looking like a genius.
— Gareth Soloway (@GarethSoloway) August 6, 2024
“Marko got fired at the top of the market. Amazing,” wrote former Goldman Sachs banker and chart technical analyst Helene Meisler on August 5th, a day that drew comparisons to 1987’s Black Monday.
Wall Street isn't kind to those swimming against the current
Joining JPMorgan in 2008 as part of the notorious Bear Stearns acquisition, Kolanovic’s track record was so stellar that a Bloomberg column referred to him as “Gandalf” in 2015, while CNBC crowned him “half-man, half-god”. Kolanovic's X profile even references his former star status.
He correctly predicted in early 2020 that the market would shake off the COVID pandemic and record fresh all-time highs that year at a time when few thought that was even remotely possible.
Handelsblatt blamed his sacking on Wall Street’s penchant to outwardly admire contrarians for their strong convictions while simultaneously cultivating a repressive climate where swimming with the crowd is the safest bet for career advancement.
While Kolanovic incorrectly predicted a 2022 market rally when stocks ended up taking a dive sparked by the Fed’s draconian interest rate hikes, the real mistake he made was to turn bearish when consensus opinion remained solidly bullish.
“It shouldn’t surprise anyone that Kolanovic’s downfall resulted not from his excessive optimism, but too much pessimism,” the German business daily wrote. While clients are annoyed when bearish markets turn against them, “they become really angry when others profit from rising prices and they don’t.”
Whether Kolanovic wanted to use his social media posts to impress potential new employers is unclear. He did not respond to a Fortune request for comment.
