The Weekly Strategy Report (April 15, 2019) - J.P. Morgan Asset Management
CLOSE

The Weekly Strategy Report (April 15, 2019)

In brief
  • The Federal Reserve (Fed) tilt toward dovishness this year has echoed through the policy stances of other major central banks.
  • For the European Central Bank and Bank of Japan, increased dovishness primarily appears in the form of extended forward guidance, while other DM central banks have more room to act if desired.
  • In emerging markets, central banks’ earlier tightening cycle is giving way to rate cuts, albeit modestly so.
  • We expect the Fed to stay on hold through this year; although we see two-sided risk to that outlook, we think inertia will prevail.
  • Central bank dovishness leaves us neutral on duration, despite the rally in government bond yields; otherwise, we see a fairly benign, if unspectacular, environment for risky assets that is supportive of credit in particular, with likely downward pressure on the U.S. dollar.
EXHIBIT 1: U.S. CORE CONSUMER PRICES AND FINANCIAL CONDITIONS

EXHIBIT 1: U.S. CORE CONSUMER PRICES AND FINANCIAL CONDITIONS

Source: Haver Analytics, Bloomberg; data as of April 10, 2019. CPI: Consumer price index. FCI: Financial conditions index. 3m/3m saar: three-month-over-three-month seasonally adjusted rate.

The Weekly Strategy Report (April 15, 2019)

Related products

Global Allocation Fund
There’s growth to be found when you know where to look. With access to the entirety of J.P. Morgan’s global investment platform, the Fund searches worldwide to maximize total return, while also managing risk.
Income Builder fund
Using a multi-asset, flexible approach that seeks only the best income opportunities from around the globe, our Income Builder Fund aims to provide investors with a consistent and attractive income stream.
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.