The Weekly Brief (7 March 2016) - J.P. Morgan Asset Management

The Weekly Brief (7 March 2016)

Contributor Global Markets Insights Strategy Team

Global equities have regained a degree of composure in the last couple of weeks, rallying 9% since mid-February. Despite the recent recovery, investor sentiment remains fragile and many continue to hold safe-haven assets.

Gold, a traditional source of comfort in troubled times, is up 16% year to date which is its best start to a year since 1980. Global government bonds are also off to a strong start, up 3.0% in 2016; their strongest start to a year since 1993. The fact that investors are willing to invest into an asset class where over 25% of bonds have a negative yield—and therefore guarantee investors a nominal loss if held to maturity—shows that we are not out of the woods just yet.

Year to date performance for select asset classes
Index to 31 December 2015

Source: FactSet, J.P. Morgan Asset Management. Government bonds: J.P. Morgan GBI index, Global equities: MSCI World. Data as of 3 March 2016.

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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 (07 March 2016)