"the decline in the Chinese stock market is out of line with fundamentals, and given the expected growth recovery and monetary and fiscal stimulus, we believe that the Chinese stock market provides a good buying opportunity for equity investors," said Kolanovich, chief global market strategist. Kolanovic also expects a strong dollar to boost relative gains in international markets such as Japan, the eurozone and the UK's FTSE 100 index.

Although Kolanovic believes U. S. stocks will rise by the end of the year, he expects the earnings background to be more challenging in 2023 than currently expected. If there is a recession in 2023, the start, depth and timing of the contraction will determine the extent of the decline in earnings.

Earnings for U.S. stocks in the third and fourth quarters are expected to confirm that the labor market's resilience and fundamentals have stabilized, but Xiaomo lowered its earnings per share forecast for the S & P 500 to flat year-on-year in 2023. Mr Kolanovic said that for the s & p 500, the bank assumed that for every 1 per cent rise in the dollar, the index's cumulative profits would fall by 0.5 per cent.

Kolanovic was ranked as the No. 1 equity strategist in last year's Institutional Investor survey, but so far this year, his bullish forecast has not been very successful. This summer, he insisted that U. S. stocks will gradually recover in 2022 and that the S & P 500 is likely to remain unchanged by the end of the year, and repeatedly urged investors to buy bargains.

Last week, Mr Kolanovic cut his allocation of more stocks and less bonds, citing growing risks posed by Fed policy and geopolitics. Kolanovic said earlier this month that such risks could put at risk the original target of 4800 for the S & P 500 by the end of the year.