The Weekly Strategy Report (May 20, 2019) - J.P. Morgan Asset Management

The Weekly Strategy Report (May 20, 2019)

Contributor Multi-Asset Solutions
In brief
  • After several months of calm, recent weeks have brought a resurgence of international trade disputes; the U.S. and China raised tariffs again on each other’s goods, and other trade issues continue to ferment.
  • Although the tariff hikes should generate limited direct costs, knock-on effects through financial market moves or private sector confidence could prove significant.
  • Damage to other countries might exceed the hit to the U.S. and China (especially considering the latter’s willingness to use counter-cyclical stimulus) and could postpone the recovery in global industry we previously expected to occur around mid-year.
  • With tariff hikes likely to boost reported inflation even as they drag on growth, we see little near-term implication for monetary policy.
  • The return of trade disputes cuts against the more constructive fundamental view on equities that we recently adopted, although as a result of renewed trade tensions, valuations have moved in favor of stocks and against bonds.


Saar: Haver Analytics, J.P. Morgan Asset Management Multi-Asset Solutions; data through 4Q18

The Weekly Strategy Report (May 20, 2019)

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
JPMorgan Global Growth & Income plc

Important information

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, 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. Both past performance and yields is not a reliable indicator of current and future results.

J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority, Registered in England No. 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.