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    1. Market volatility

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    Stay strong in volatile markets

    When the going gets tough, the ability to remain calm and invest with composure can help ensure better outcomes.

    Invest with composure

    Market volatility is a fact of life. While global markets offer access to attractive long-term capital growth and income opportunities, market pullbacks happen frequently. Fortunately, there are several strategies that investors can use to make sure they are best positioned to ride out the market’s ups and downs.

    JP Morgan | UK Sustainable Equity Freeforms

    Aim long

    Longer time horizons can dampen the impact of market volatility.

    Stay calm

    Selling when markets are volatile risks locking in losses.

    Diversify

    Diversification can stabilise portfolios in volatile markets.

    Take a long view to manage volatility

    History suggests investors are much less likely to suffer losses when investments are held over longer periods of time, particularly for balanced portfolios. It's therefore important to keep a long-term perspective.



    Range of equity and bond total returns

    %, annualised total returns, 1950-present



    Source: Bloomberg Barclays, Refinitiv Datastream, S&P Global, Strategas/Ibbotson, J.P. Morgan Asset Management. Large cap equity represents the S&P 500 Composite and Bonds represents the Strategas/Ibbotson US Government Bond Index, the US Long-term Corporate Bond Index until 2000 and the Bloomberg Barclays US Agg. Corporate – Investment Grade Index from 2000 onwards. Returns shown are per annum and are calculated based on monthly returns from 1950 to latest available and include dividends. Past performance is not a reliable indicator of current and future results. Guide to the Markets - UK. Data as of 30 June 2023.

    Don't panic sell when markets drop

    Drawdowns are part and parcel of investing. Stock markets have mostly ended in positive territory, even in years marked by declines of more than 10%. Selling when markets are volatile therefore risks locking in losses when markets bounce back.



    FTSE All-Share intra-year declines vs. calendar-year returns

    %; despite average intra-year drops of 15.4% (median 12.3%), annual returns are positive in 25 of 37 years



    Source: FTSE, Refinitiv Datastream, J.P Morgan Asset Management. Returns shown are price returns in GBP. Intra-year decline refers to the largest market fall from peak to trough within the calendar year. Returns shown are calendar years from 1986 to 2022. Past performance is not a reliable indicator of current and future results. Guide to the Markets - UK. Data as of 30 June 2023.

    Spread risk across regions, asset classes and strategies

    In the last 10 calendar years, a portfolio investing in a combination of developed market and emerging market equities, investment grade and high yield bonds, property securities, commodities and hedge funds has delivered healthy returns with much less volatility than investing in equities alone.



    Asset class returns (GBP)



    Diversification does not guarantee positive returns nor eliminate the risk of loss.
    Source: Bloomberg Barclays, FTSE, J.P. Morgan Economic Research, MSCI, Refinitiv Datastream, J.P. Morgan Asset Management. Annualised return and volatility covers the period from 2013 to 2022. Vol. is the standard deviation of annual returns. Govt bonds: Bloomberg Barclays Global Aggregate Government Treasuries; HY bonds: ICE BofA Global High Yield; EMD: J.P. Morgan EMBI Global Diversified; IG bonds: Bloomberg Barclays Global Aggregate – Corporates; Cmdty: Bloomberg Commodity; REITs: FTSE NAREIT All REITS; DM equities: MSCI World; EM equities: MSCI EM; Hedge funds: HFRI Global Hedge Fund Index; Cash: JP Morgan Cash United Kingdom (3M). Hypothetical portfolio (for illustrative purposes only and should not be taken as a recommendation): 30% DM equities; 10% EM equities; 15% IG bonds; 12.5% government bonds; 7.5% HY bonds; 5% EMD; 5% commodities; 5% cash; 5% REITs and 5% hedge funds. All returns are total return, in GBP, and are unhedged. Past performance is not a reliable indicator of current and future results. Guide to the Markets - UK. Data as of 30 June 2023.

    Insights for challenging markets

    It’s hard to predict market volatility, but you can prepare. Keep up to date on all major market events and economic developments with the latest analysis from our investment experts and market strategists.

    Market Views

    Inform your investment strategy by reading the latest views on global markets from our Market Insights team.

    • Beyond the pause: What happens after peak rates?
    • Mid-Year Investment Outlook 2023: Too good to be true
    • Monthly Market Review

    Asset class views

    Keep up to date on the latest strategy comments and allocation changes from across our investment platforms.

    • Equity views
    • Fixed income views
    • Global asset allocation views

    Market Watch – economic and market updates

    Listen to our market strategists and senior investors to find out more about the economic repercussions of the war in Ukraine and its impact on markets.

    Income investing in a higher-for-longer world

    In this edition of Market Watch, Karen Ward is joined by Multi-Asset Solutions Portfolio Manager and Head of Income Strategies Michael Schoenhaut, as they assess the outlook for the economy and markets in a higher-for-longer interest rate environment, and consider the implications for income-generating multi-asset portfolios.

    What next for the US and UK economies?

    In this Market Watch, we’ll be doing a deep dive into the US and UK economies. Dr David Kelly will join us from New York to provide his take on the US outlook while Karen will reflect on whether the OECD is right to claim that the UK has the worst growth and inflation trajectory of all developed nations.

    Understanding inflation


    Join Karen Ward and Stephen D. King, author of the book We Need to Talk About Inflation, which the Financial Times described as “essential reading”. They discuss the lessons from history and whether we are in a new inflationary regime.

    Building resilient portfolios

    In an unpredictable world, investment portfolios need the flexibility to adapt and thrive, whatever lies ahead. This means investing in funds that can provide exposure to the market’s upside when things are going well, but that can also help to provide stability when times are tough. 

    Core equity

    Consider quality equity exposure at the heart of your portfolio, through large cap, developed market equity funds. These strategies tend to be less volatile than smaller cap and emerging market equity funds.

    Unconstrained fixed income

    Investing in unconstrained bond funds can help provide access to the diversification benefits of fixed income, while being able to adjust interest rate risk and credit risk as market conditions change.

    Flexible multi-asset

    Consider strategies that can provide returns with a low correlation to risk assets, and have the ability to dial up or dial down risk across the market cycle.

    Alternatives

    A further level of diversification to traditional equity and bond portfolios can be achieved via exposure to liquid alternative funds, which have the ability to generate positive returns in various market environments.

    Featured funds

    Our featured funds can help investors ride out periods of market volatility by adding much-needed resilience to portfolios.

    JPM US Equity Income Fund

    High quality access to the long-term growth potential of the world’s largest stock market through a variety of market environments.

    Find out more

    JPM Global Bond Opportunities Fund

    A flexible and unconstrained fixed income fund seeking enhanced total returns from global bond markets.

    Find out more

    JPM Global Equity Income Fund

    A core, global equity income fund that aims to deliver positive excess returns whilst also seeking to deliver a superior dividend yield to the market, with an emphasis on stocks that we believe will compound at a faster rate than the market.

    Find out more

    JPM Global Macro Sustainable Fund

    A global macro portfolio that seeks positive returns in diverse market environments while maintaining a positive tilt to sustainable companies and issuers.

    Find out more

     

    Seven principles for long-term investing success

    Learn the seven time-tested strategies to help you achieve long-term investing success.

    Find out more

    For Professional Clients / Qualified Investors only – not for Retail use or distribution.

    This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. The value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, there can be no assurance that the investment objectives of the investment products will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. As the product may not be authorised or its offering may be restricted in your jurisdiction, it is the responsibility of every reader to satisfy himself as to the full observance of the laws and regulations of the relevant jurisdiction. Prior to any application investors are advised to take all necessary legal, regulatory and tax advice on the consequences of an investment in the products. Shares or other interests may not be offered to, or purchased, directly or indirectly by US persons. All transactions should be based on the latest available Prospectus, the Key Information Document (KID) and any applicable local offering document. These documents together with the annual report, semi-annual report, the articles of incorporation and sustainability-related disclosures for the Luxembourg domiciled products are available in English upon request from JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, your financial adviser, your J.P. Morgan Asset Management regional contact or at https://am.jpmorgan.com. A summary of investor rights is available in English at https://am.jpmorgan.com/lu/investor-rights. J.P. Morgan Asset Management may decide to terminate the arrangements made for the marketing of its collective investment undertakings. In Switzerland, JPMorgan Asset Management Switzerland LLC (JPMAMS), Dreikönigstrasse 37, 8002 Zurich, acts as Swiss representative of the funds and J.P. Morgan (Suisse) SA, Rue du Rhône 35, 1204 Geneva, as paying agent. With respect to its distribution activities in and from Switzerland, JPMAMS receives remuneration which is paid out of the management fee as defined in the respective fund documentation. Further information regarding this remuneration, including its calculation method, may be obtained upon written request from JPMAMS. This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000. This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

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