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    1. Market volatility

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    Stay strong in volatile markets

    When the going gets tough, the ability to remain calm and invest with composure can help ensure better outcomes.

    Invest with composure

    Market volatility is a fact of life. While global markets offer access to attractive long-term capital growth and income opportunities, market pullbacks happen frequently. Fortunately, there are several strategies that investors can use to make sure they are best positioned to ride out the market’s ups and downs.

    JP Morgan | UK Sustainable Equity Freeforms

    Aim long

    Longer time horizons can dampen the impact of market volatility.

    Stay calm

    Selling when markets are volatile risks locking in losses.

    Diversify

    Diversification can stabilise portfolios in volatile markets.

    Take a long view to manage volatility

    History suggests investors are much less likely to suffer losses when investments are held over longer periods of time, particularly for balanced portfolios. It's therefore important to keep a long-term perspective.



    Range of equity and bond total returns

    %, annualised total returns, 1950-present



    Source: Bloomberg Barclays, Refinitiv Datastream, S&P Global, Strategas/Ibbotson, J.P. Morgan Asset Management. Large cap equity represents the S&P 500 Composite and Bonds represents the Strategas/Ibbotson US Government Bond Index, the US Long-term Corporate Bond Index until 2000 and the Bloomberg Barclays US Agg. Corporate – Investment Grade Index from 2000 onwards. Returns shown are per annum and are calculated based on monthly returns from 1950 to latest available and include dividends. Past performance is not a reliable indicator of current and future results. Guide to the Markets - Europe. Data as of 31 December 2022.

    Don't panic sell when markets drop

    Drawdowns are part and parcel of investing. Stock markets have mostly ended in positive territory, even in years marked by declines of more than 10%. Selling when markets are volatile therefore risks locking in losses when markets bounce back.



    FTSE All-Share intra-year declines vs. calendar-year returns

    %; despite average intra-year drops of 15,5% (median 12,1%), annual returns are positive in 32 of 43 years



    Source: MSCI, Refinitiv Datastream, J.P Morgan Asset Management. Returns are local currency price returns. Intra-year decline refers to the largest market fall from peak to trough within the calendar year. Returns shown are calendar years from 1980 to 2022. Past performance is not a reliable indicator of current and future results. Guide to the Markets - Europe. Data as of 31 December 2022.

    Spread risk across regions, asset classes and strategies

    In the last 10 calendar years, a portfolio investing in a combination of developed market and emerging market equities, investment grade and high yield bonds, property securities, commodities and hedge funds has delivered healthy returns with much less volatility than investing in equities alone.



    Asset class returns (EUR)



    Source: Bloomberg Barclays, FTSE, J.P. Morgan Economic Research, MSCI, Refinitiv Datastream, J.P. Morgan Asset Management. Annualised return and volatility covers the period from 2012 to 2021. Vol. is the standard deviation of annual returns. Govt bonds: Bloomberg Barclays Global Aggregate Government Treasuries; HY bonds: ICE BofA Global High Yield; EMD: J.P. Morgan EMBI Global Diversified; IG bonds: Bloomberg Barclays Global Aggregate – Corporates; Cmdty: Bloomberg Commodity; REITs: FTSE NAREIT All REITS; DM equities: MSCI World; EM equities: MSCI EM; Hedge funds: HFRI Global Hedge Fund Index; Cash: JP Morgan Cash Index EUR (3M). Hypothetical portfolio (for illustrative purposes only and should not be taken as a recommendation): 30% DM equities; 10% EM equities; 15% IG bonds; 12,5% government bonds; 7,5% HY bonds; 5% EMD; 5% commodities; 5% cash; 5% REITs and 5% hedge funds. All returns are total return, in EUR, and are unhedged. Past performance is not a reliable indicator of current and future results. Guide to the Markets - Europe. Data as of 31 December 2022.

    Insights for challenging markets

    It’s hard to predict market volatility, but you can prepare. Keep up to date on all major market events and economic developments with the latest analysis from our investment experts and market strategists.

    Market Views

    Inform your investment strategy by reading the latest views on global markets from our Market Insights team.

    • Making good investment decisions in times of volatility
    • Investment Outlook 2023
    • Monthly Market Review

    Asset class views

    Keep up to date on the latest strategy comments and allocation changes from across our investment platforms.

    • Equity views
    • Fixed income views
    • Global asset allocation views

    Market Watch – economic and market updates

    Listen to our market strategists and senior investors to find out more about the economic repercussions of the war in Ukraine and its impact on markets.

    Has the tide turned for
    emerging market equities?

    Join Anuj Arora, Head of Emerging Market and Asia Pacific equities, and Karen Ward to discuss the outlook for China and the emerging markets in 2023.

    Q1 2023 Guide to the
    Markets

    Join Chief Market Strategist for EMEA Karen Ward and Global Market Strategists Mike Bell and Hugh Gimber as they discuss the outlook for the year ahead.

    Is fixed income exciting again?

    Watch Karen Ward and Iain Stealey’s discussion on whether we are past the worst of the bond market rout and why fixed income is now exciting for the first time in over a decade.

    Building resilient portfolios

    In an unpredictable world, investment portfolios need the flexibility to adapt and thrive, whatever lies ahead. This means investing in funds that can provide exposure to the market’s upside when things are going well, but that can also help to provide stability when times are tough. 

    Core equity

    Consider quality equity exposure at the heart of your portfolio, through large cap, developed market equity funds. These strategies tend to be less volatile than smaller cap and emerging market equity funds.

    Unconstrained fixed income

    Investing in unconstrained bond funds can help provide access to the diversification benefits of fixed income, while being able to adjust interest rate risk and credit risk as market conditions change.

    Flexible multi-asset

    Consider strategies that can provide returns with a low correlation to risk assets, and have the ability to dial up or dial down risk across the market cycle.

    Alternatives

    A further level of diversification to traditional equity and bond portfolios can be achieved via exposure to liquid alternative funds, which have the ability to generate positive returns in various market environments.

    Featured funds

    Our featured funds can help investors ride out periods of market volatility by adding much-needed resilience to portfolios.

    JPMorgan ETFs (Ireland) ICAV - EUR Ultra-Short Income UCITS ETF

    Investing in ultra-short fixed income securities and seeks attractive yield, even in challenging environments.

    Find out more

    JPMorgan Funds – Global Bond Opportunities Sustainable Fund

    A flexible and unconstrained sustainable fixed income fund seeking enhanced total returns from global bond markets.

    Find out more

    JPMorgan Investment Funds – Global Income Sustainable Fund

    A flexible multi-asset portfolio seeking an attractive, consistent yield and balanced risk profile from sustainable sources globally.

    Find out more

    JPMorgan Investment Funds – Global Macro Sustainable Fund

    A global macro portfolio that seeks positive returns in diverse markets while maintaining a positive tilt to sustainable companies and issuers.

    Find out more

     

    Seven principles for long-term investing success

    Learn the seven time-tested strategies to help you achieve long-term investing success.

    Find out more

    This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. 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. It should be noted that 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. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. Prior to any application investors are advised to take all necessary legal, regulatory and tax advice on the consequences of an investment in the products. Investment is subject to documentation, which is comprised of the Prospectus, Key Investor Information Document (KIID) and either the Supplementary Information Document (SID) or Key Features/Terms and Conditions. These documents, together with the annual report, semi-annual report and instrument of incorporation are available free of charge from JPMorgan Asset Management (UK) Limited.


    This communication is issued in the UK by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP. 

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