The Weekly Brief (05 October 2015) - J.P. Morgan Asset Management
CLOSE

The Weekly Brief (05 October 2015)

Contributor Global Markets Insights Strategy Team

The Euro stoxx 50 is now lower than it was going into the final quarter last year. Back then Brent oil was trading at around $100, EURUSD was at 1.26 and investors were relatively optimistic with only 15% of them describing themselves as bearish.

Since then the European Central Bank (ECB) has started printing €60bn a month and said it is willing to add more if necessary, the Euro has weakened by around 10% and the oil price has more than halved. Yet 30% of investors now describe themselves as bearish, the highest proportion since 2012 and valuations are back down to their long term average. We think the low oil price, low euro, low borrowing costs, reasonable valuations and already weak sentiment will support European equities from here.

Valuations fall along with sentiment
Forward price to earnings, percentage of bearish investors

Source: Bloomberg, IBES 12m Forward P/E, Investors Intelligence Investor Sentiment Readings. J.P. Morgan Asset Management. Data as at 28 September 2015.

Download the full report:

Related products

JPM Global Macro Opportunities Fund
Leveraging global macro themes to generate performance. This fund targets positive returns in various market conditions by capitalising on the opportunities created by economic trends within a risk-controlled framework.
JPM Multi-Asset Income Fund
Using a flexible approach that seeks only the best income opportunities from around the globe, our Multi-Asset Income Fund aims to provide investors with a consistent and attractive income stream and the opportunity for capital growth.
JPMorgan Global Growth & Income plc

The JPMorgan Global Growth & Income plc seeks out strong long-term returns by investing in a best ideas, high-conviction portfolio from across the world's stock market. The Company also delivers predictable quarterly income distributions which are set at the beginning of its financial year.

Important information

Please be aware that this material is for information purposes only. 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 are considered to be reliable at the time of writing, 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. JPMorgan Asset Management Marketing Limited accepts no legal responsibility or liability for any matter or opinion expressed in this material.

The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future.

The Weekly Brief (05 October 2015)