The Weekly Strategy Report (24 April 2017) - J.P. Morgan Asset Management

The Weekly Strategy Report (24 April 2017)

Contributor Multi-Asset Solutions
In brief
  • The S&P 500 appears set to record its fastest earnings growth rate in 2017 in six years. Non-U.S. equity markets are seeing their consensus growth estimates revised upward. While there are inevitably risks to the consensus, we believe the scope for disappointment is narrower than in recent years.
  • Margins could be threatened by a tightening U.S. labor market, but margins do not tend to decline materially until two to three years after the unemployment rate falls below the non-accelerating inflation rate of unemployment (NAIRU).1 Currently, margins are supported by better nominal growth and low corporate borrowing costs.
  • Our multi-asset portfolios remain overweight equities vs. bonds and we continue to diversify our equity exposure across the major regions, reflecting a broadening out of economic growth.

Source: Thomson DataStream, J.P. Morgan Asset Management Multi-Asset Solutions; data as of April 19 2017. For illustrative purposes only.
The Weekly Strategy Report (24 April 2017)

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.