Our GFICC team believes the global economy in 2Q 2020 has likely experienced the deepest and shortest recession ever. As governments work to address the public health emergency, major central banks are likely to continue with asset purchases and keep rates low for years. There will be occasional bouts of market volatility on the path to recovery, but there are still potential investment opportunities across the full fixed income spectrum.
This content represents our GFICC team’s current view and overall strategy provided for information only based on current market conditions not taking into consideration any specific investor’s investment objective and risk appetite. Not to be construed as investment recommendation or advice.
1. Source: J.P. Morgan Asset Management’s GFICC Investment Quarterly (IQ). As of 10.06.2020. Opinions Estimates and forecasts may or may not come to pass. Provided for information only. These represent GFICC team’s views under normal market conditions subject to change from time to time.
2. Diversification does not guarantee investment return and does not eliminate the risk of loss.
3. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstance and market conditions.
4. Source: J.P. Morgan Asset Management’s GFICC Investment Quarterly (IQ). As of 10.06.2020. Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Above-trend: Global gross domestic product (GDP) growth >3.5%, inflation >2%; Sub-trend: Global GDP growth 2-3.5%, inflation 0-2%; Recession: Global GDP growth <2%, inflation <0%; Crisis: A disorderly movement in markets causes systemic impact and tail risk. Provided for information only and not to be construed as investment recommendation or advice.
5. Source: Federal Reserve, European Central Bank, Bank of Japan, Bank of England, J.P. Morgan Asset Management. As of June 2020.
6. Securitisation is the process in which certain type of assets, such as mortgages or other types of loans, are pooled so that they can be repackaged into interest-bearing securities. Examples of securitised debt include mortgage-backed securities which are debt securities backed by mortgage-related financial assets. These assets include residential and commercial mortgage loans.
7. Source: Federal Reserve, J.P. Morgan, Bank of America. QE: quantitative easing. As of June 2020.
The information provided is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Therefore, before you decide to buy any product or keep or cancel a similar product that you already hold, it is important that you read and consider the relevant JPMorgan fund Product Disclosure Statement (PDS), which is available to download on this website and make sure that the product is appropriate for you. Before making any decision, it is important for you to consider these matters and to seek appropriate legal, tax, and other professional advice. Issued by JPMorgan Asset Management (Australia) Limited ABN 55 143 832 080, AFSL No. 376919.