JP Morgan has given its clients advice on the distribution of assets in the investment portfolio - the share of gold he recommends to increase, and shares - to reduce, RBC reports with reference to CNBC. According to the chief strategist of the bank Marko Kolanovic, the U.S. stock market will show weak results in the medium term - it will be pressured by the escalation of the Middle East conflict.

The level of corporate earnings will prove disappointing for investors, the strategist warned. Stocks are still overvalued and interest rates continue to be at high levels. The latter factor does not allow the stock market to grow steadily, and bond yields will fall, the expert warned, recommending investors to switch to safe assets to hedge risks.

In addition to the above problems, geopolitical tensions are escalating. In view of these negative factors, the bank will cautiously assess the prospects of the U.S. stock market, said Kolanovic.