The Weekly Strategy Report (July 6, 2020) - J.P. Morgan Asset Management
CLOSE

The Weekly Strategy Report (July 6, 2020)

Contributor Multi-Asset Solutions
In brief
  • After losing a third of its value in a month's time in Ql, the MSCI All Country World Index (ACWI) was up nearly 20% for Q2. The gains reflected progress toward lifting lockdown measures globally and an initial rebound in economic activity that was quicker and stronger than anticipated.
  • Growth and cyclical stocks led strong equity performance, particularly as economic data started pointing to positive growth momentum. In credit markets, Federal Reserve (Fed) purchases of ETFs and single name bonds pushed spreads tighter, particularly in the investment grade space.
  • We think a sustainable economic recovery has begun and we take a moderately risk-on stance in multi-asset portfolios. The path of COVID-19 will impact the pace of the recovery, but likely will not threaten another material decline in economic activity. We hold a modest overweight to stocks, an overweight to U.S. high yield and a mild duration underweight.
EXHIBIT 1: CYCLICAL STOCKS OUTPERFORM OVER THE QUARTER

EXHIBIT 1: CYCLICAL STOCKS OUTPERFORM OVER THE QUARTER

Source: Bloomberg, Morgan Stanley, J.P. Morgan Asset Management; data as of July 2020. For illustrative purposes only.

The Weekly Strategy Report (July 6, 2020)

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.