Headwinds and tailwinds for global asset allocators

John Bilton, Global Head of Multi‐Asset Strategy, J.P. Morgan Asset Management, gives his latest outlook on themes driving global asset allocation.

London, 15 July 2015: John Bilton, Global Head of Multi‐Asset Strategy, J.P. Morgan Asset Management, gives his latest outlook on themes driving global asset allocation: “Globally we continue to see a supportive backdrop for equities, which we still prefer relative to bonds. U.S. stocks lagged in early 2015, but cuts to earnings expectations leave a low hurdle for positive surprise.

Meanwhile, higher beta markets—Europe and Japan—continue to deliver on earnings as currency weakness boosts output. Central bank stimulus is likely to keep in place a bid for duration, even though disinflationary trends appear to be bottoming out and yields are starting to rise. As inflation expectations grind higher and the U.S. starts to raise rates, bond yields—especially at the short end—have scope to rise further”.

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