The Weekly Strategy Report (March 19, 2018) - J.P. Morgan Asset Management

The Weekly Strategy Report (March 19, 2018)

In brief
  • Emerging markets are caught in a tug of war between escalating trade tensions and healthy global growth. Although reflation has been a persistent market theme since the U.S. election, in recent weeks investors are focusing on the politics of trade.
  • We caution against reacting too negatively to protectionist talk (and tweets) from the White House. Rhetoric is not reality, supply chains are integrated, trade is mutually beneficial and U.S. tariffs could be defeated by international legal challenges.
  • Above-trend global growth, stable commodities and strengthening currencies are supportive of both emerging market (EM) equity and debt. Valuations do not appear stretched in either asset class. Further, most emerging economies with external financing concerns have seen their large current account deficits close.
  • We retain conviction in our base case of steady global growth and maintain an overweight in both EM equity and debt.

Source: Haver Analytics; data as of March 15, 2018. For illustrative purposes only.
Weekly Strategy Report (March 19, 2018)

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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.

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