Guide to Alternatives
Q1 2021
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Posts From JP Morgan
The Weekly Brief
Monetary and fiscal coordination has supported economic activity in 2020. As we discuss in our Investment Outlook 2021: Bridge over troubled waters, governments and central banks have proved pivotal in helping economies to bridge the gap caused by the virus.
Thanksgiving Eye on the Market
The Armageddonists were not rescued from underperformance purgatory by COVID, and markets are at alltime highs again with prospects for further gains in 2021. However, I can think of something that could rescue them, at least temporarily: the risk of
Long-Term Capital Market Assumptions
2021 | 25th annual edition Time-tested projections to build stronger portfolios A global pandemic can shift our perspective, making it more difficult to focus on the future. But, of course, this is the essential task of any long-term investor, regardless
Multi-Asset Solutions Monthly Strategy Report
Global markets and multi-asset portfolios The coronavirus pandemic has dominated news flow throughout 2020. Looking forward, even after the first acute phase of the pandemic has passed, its imprint on our economy and indeed on the very fabric of our
The Weekly Brief
In the final quarter of this year, investors are likely to learn the answers to three pivotal questions for markets. First, we are likely to hear the results of vaccine trials. Second, we will learn the results of the US
Guide to the Markets
Europe | | 4Q 2020 As of 30 September 2020
A new role for US equities in multi-asset portfolios
Multi-Asset Solutions Weekly Strategy Report IN BRIEF From a portfolio perspective, exposure to tech winners in U.S. equities is not a free lunch. The same growth stories that prompted outsize U.S. equity returns in recent years and a faster recovery
Japan: Beyond Abe, but nog beyond Abenomics
Multi-Asset Solutions Weekly Strategy Report Global markets and multi-asset portfolios In late August, Japanese Prime Minister Shinzo Abe announced his resignation because of health problems. Abe had served for nearly eight years, with his administration lending stability to Japanese politics
Multi-Asset Solutions Weekly Strategy Report
Global markets and multi-asset portfolios The rebound in global equities has been quite dramatic, but so too has been the recovery in the market pricing of inflation, especially in the U.S. Since March, 10-year U.S. CPI swaps and Treasury inflation
Review of markets over the second quarter of 2020
Market Review It’s been a very strong quarter for equities and credit as central banks and governments provided enormous amounts of stimulus and economies started to reopen. Despite the strong rebound in risk …
Guide to the Markets
US 3Q 2020, As of June 30, 2020
Strong Recovery Puts Chinese A Shares in the Spotlight
Multi-Asset Solutions Weekly Strategy Report China has been leading other major emerging market (EM) equity markets, staging a strong recovery from March’s lows. China’s CSI 300 Index (of onshore stocks traded in Shenzhen and Shanghai) has more than fully recovered
Multi-Asset Solutions Weekly Strategy Report
Global markets and multi-asset portfolios This recession will forever be remembered as one of the most rapid and shocking economic slowdowns on record. The question at the forefront of asset allocation decisions is whether the recovery will be equally distinctive
Review of markets over May 2020
The rebound in equity markets extended into May. The impact of the COVID-19 pandemic continued to dominate markets, with an increasing focus on how countries would begin to relax their lockdown measures and how this would affect the economy. Volatility
Moderately greater risk tolerance: An update to our views
A changed economic and market environment leads us to an off-cycle update of our asset allocation views, typically published after our quarterly Strategy Summits. Overall, our views reflect a moderately greater risk tolerance and a recognition that central banks are
Review of markets over April 2020
After the severe shock in March, markets rebounded strongly in April. COVID-19 continued to spread globally, but some countries saw daily new infection rates start to fall and are now planning to gradually reopen their economies. Governments and central banks
Is the earnings downgrade cycle already nearly over?
Is the earnings downgrade cycle already nearly over? Following the shortest bear market in history (from February 19 to March 23), equities have staged a massive rally. This has left investors wondering whether markets have bottomed or will instead revisit
Multi-Asset Solutions Weekly Strategy Report
Portfolio Insights Following the shortest bear market in history (from February 19 to March 23), equities have staged a massive rally. This has left investors wondering whether markets have bottomed or will instead revisit their March lows. To gain confidence
Navigating The Long Road Back To Normal From Covid-19
Amid the depths of a global COVID-19 pandemic and recession, global equities rebounded dramatically over the past few weeks, with the S&P 500 retracing more than half of its sharp 35% plunge. Much of that rebound reflects the anticipation and
Floating in a most peculiar way
1Q20 earnings: Virus oddity Global stock markets saw an unprecedented level of volatility in March, as investors attempted to discern how the rapid spread of COVID-19 would aect the economy and corporate profits. The past few weeks have seen a
Markets Wait On Plans For The Economy To Restart
Since the coronavirus shock began, we have focused on several broad categories within the information flow: bank funding and market operational stress; the policy response; messages from economic data; and, most importantly, the outlook for the virus itself. Following their
COVID-19: Plotting a path to eventual recovery
Quarantine measures to tackle the COVID-19 coronavirus outbreak pushed down global economic activity in March. We expect further steep declines through April and May, leading to a sharp plunge in second-quarter activity data. Beyond that, however, thoughts will turn to
Guide to Alternatives
Market Insights Powerpoint by JP Morgan Asset Management
Volatility Eases And Normalcy Begins To Return To Treasury Markets
Bond markets took a roller coaster ride over the last month. The extreme volatility reflected illiquid conditions as dealers worked from home; regulatory pressure weighing on dealer balance sheets; de-risking in risk-parity funds; and profit taking in fixed income to
Multi-Asset Solutions Weekly Strategy Report
Portfolio Insights In the history of financial markets, there has never been a quarter like Q1 2020. As the global outbreak of COVID-19 gathered force, various forms of lockdowns and quarantines ensued, causing risk assets to plummet at an unprecedented
Global Asset Allocation Views
Insights and implications from the Multi-Asset Solutions Strategy Summit We are in a time of extreme volatility and uncertainty. New information, policy announcements and data are becoming available every day. As we navigate this crisis, we expect to increase the
Review of markets over the first quarter of 2020
This quarter has not been an easy one for most investors. While it was already clear that we were in the later stages of the economic cycle, nobody could have predicted at the start of this year that large parts
A review of global markets and portfolio positioning in Q1
We review trends across markets and economies in Q1 2020, consider what they mean for our multi-asset portfolios and present a positioning update. In the history of financial markets, there has never been a quarter like Q1 2020. As the
COVID-19 and U.S. life insurers
We look at YE2019 asset exposures in the U.S. life industry that have a high likelihood of being impacted by the effects of and response to COVID-19.
Eye on the Market: Man vs Nature Part II
In this week’s note, we take a close look at country and regional virus data, and examine the pitfalls of over-extrapolating trends that often reverse. We compare the US and China versions of an “economic lockdown”, and unsurprisingly find that
Capital-efficient alternatives for Asian insurers
Capital-efficient alternatives for Asian insurers – J.P. Morgan Institutional Asset Management Skip Nav J.P.Morgan Home / Institutional Asset Management / Capital-efficient alternatives for Asian insurers Alternatives may enhance returns opportunities, improve diversification, and help insulate insurers’ balance sheets from public
Insights and implications from the Multi-Asset Solutions Strategy Summit 2Q 2020
Just as headwinds from trade policy were beginning to dissipate, the outbreak of COVID19 has pushed the global economy into recession. The speed and depth of the ‘sudden stop’ in the economy is unprecedented, but should the virus be contained,
Eye on the Market: Man vs Nature
Man vs Nature: what the government can and cannot fix There are things the government can try and fix during a pandemic and other things which it can’t. In this note we highlight some of what we have added to
A COVID-driven spike in claims
This morning, initial claims for unemployment insurance surged to the highest level ever. Initial claims came in at 3,283,000, spiking from a slightly revised 282,000 last week. They also exceeded the prior peak of 695,000 reached in October 1982, and
The COVID-19 Relief Bill-Holding the Economy in Suspended Animation
In the early hours of this morning, the U.S. Senate passed a 2.2 trillion USD stimulus bill to combat the devastating impact of COVID-19 and social distancing on the U.S. economy. These measures cannot prevent the economy from falling into
What is the Fed doing and what does it mean for fixed income?
What has the Fed done?The U.S. Federal Reserve (Fed) has pulled out its alphabet bazooka in an effort to ensure sufficient liquidity and the smooth functioning of financial markets, while also providing credit to businesses that are affected by the
The Federal Reserve keeps at it
The Federal Reserve keeps at it: New supportive actions this week The Federal Reserve (Fed) on Monday announced new programs, with total buying power of USD300 billion, and enhanced existing ones to help support the economy and guide the markets
Managing volatility
LATEST INSIGHTS TO STAY ON TOP OF THE MARKETSCoronavirus research compilation Michael Cembalest presents his latest research on COVID-19, the U.S. election and other current events causing market volatility. Continue reading Shock, crisis, rinse, repeat Bob Michele, Global CIO and
Eye on the Market: John Stuart Mill and the road from ruin to recovery
Eye on the Market: John Stuart Mill and the road from ruin to recovery First, here’s what we’ve added to our online compilation of coronavirus materials which we continuously revise to reflect the latest economic, market and epidemiological information: The
Twin Economic Shocks Trigger Forceful Policy Stimulus
Dual shocks from COVID-19 and falling oil prices have hit the global economy. The key concern now is that significant dislocation in financial markets ricochets back onto the real economy, raising risks for the outlook. At the margin, we see
Economic Update
This weekly update provides a snapshot of changes in the economy and markets and their implications for investors. Risks: Impacts from COVID-19 may cause a global recession. Political headlines may foment market volatility. Earnings growth has slowed and could stall
Coronavirus (COVID-19) research compilation
This compilation includes all of our research to-date on the coronavirus, and will be updated continually as the pandemic continues. The high frequency charts on infection, mortality, economic and market data will be updated as data becomes available; the red
Waiting it out…
The volatility across markets has created considerable anxiety amongst investors trying to gauge the effectiveness of the healthcare response + the monetary response + the fiscal response. Given how varied the responses are by region and country, this may be
Monitoring the global impact of COVID-19
The spread of the coronavirus and its impact on global economic activity is increasingly troubling investors. Trying to predict the final outcome is a fool’s errand. Instead, in this piece we provide a framework for tracking the infection rates globally,
Review of markets over February 2020
In February, the coronavirus (COVID-19) outbreak replaced trade as the main focus for the markets. Fears of near-term negative effects on Chinese and global growth, together with the expectation that central banks around the globe will provide further monetary policy
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