* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Developed market equities
Survey
Document related concepts
Private equity secondary market wikipedia , lookup
Stock trader wikipedia , lookup
Mark-to-market accounting wikipedia , lookup
Market (economics) wikipedia , lookup
Interbank lending market wikipedia , lookup
Leveraged buyout wikipedia , lookup
Early history of private equity wikipedia , lookup
Socially responsible investing wikipedia , lookup
International investment agreement wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
Financial crisis wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Transcript
MARKET INSIGHTS Developed market equities 4Q | 2016 Portfolio Discussion | Asia Fears of another global downturn have caused volatility across markets, but the outlook for developed markets remains favorable given their lesser exposure to certain vulnerabilities. Continued economic recoveries in the U.S. and Europe suggest ample investment opportunities. Further policy divergence SLIDE COMBO: 21 | 18 | 35 • The U.S. policy is still on a tightening bias, deviating from most other central banks, but recent economic data suggests rates will be low and accommodative for even longer. • Elsewhere, some central banks have resorted to unconventional measures to boost growth momentum and raise inflation expectations. This negative interest rate policy should encourage more risk-taking investor behavior. Respectable recovery in developed markets continues • PMIs for most developed markets remain in expansionary territory above 50. The lesser reliance on a still unsteady commodity market and weak global trade should be an advantage. • The economic upswing in the U.S. is now in its seventh year and remains modest, despite some recent hiccups. Europe is experiencing a consumption-driven recovery helped by accommodative monetary policies. Japan is seeing some weak indicators, but anticipated reforms look to benefit the country. Earnings momentum looking more positive • In Europe, with approximately half of the revenues of European companies sourcing from outside of Europe and liquidity amply supported by the European Central Bank (ECB), there is hope for further earnings improvement. Brexit effects should be localized and minor. • Corporate earnings in the U.S. in recent years have largely been a story of cost reductions and higher margins. 2H16 U.S. earnings growth should pick up in line with better top-line growth and a rebound in energy. Japan’s reforms on corporate governance could help corporations focus more on raising their return on equities and profit margin. Investment implications • Fears of another global recession have spooked investors, but we believe monetary policy will help encourage more risk-on behavior and raise sentiment. • Economic recoveries in both the U.S. and Europe continue. The European economy has improved on the back of stronger domestic consumption and the ECB remains committed to their current quantitative easing program. The U.S. expansion is still in modest shape. Earnings prospects for some developed markets countries still look positive due to less significant links to a slowing China and a weak commodity market. Hence, differentiation remains key. NEXT STEPS For more Market Insights and Investment Insights resources, such as the Guide to the Markets - Asia, please contact your J.P. Morgan representative. The views contained herein are not to be taken as an advice or a recommendation to buy or sell any investment 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 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. 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. 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 yield may not be a reliable guide to future performance. 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 by the following entities: in the United Kingdom by JPMorgan Asset Management (UK) Limited, which is authorized and regulated by the Financial Conduct Authority; in other EU jurisdictions by JPMorgan Asset Management (Europe) S.à r.l.; in Hong Kong by JF Asset Management Limited, or JPMorgan Funds (Asia) Limited, or JPMorgan Asset Management Real Assets (Asia) Limited; in India by JPMorgan Asset Management India Private Limited; in Singapore by JPMorgan Asset Management (Singapore) Limited, or JPMorgan Asset Management Real Assets (Singapore) Pte Ltd; in Taiwan by JPMorgan Asset Management (Taiwan) Limited; in Japan by JPMorgan Asset Management (Japan) Limited which is a member of the Investment Trusts Association, Japan, the Japan Investment Advisers Association, Type II Financial Instruments Firms Association and the Japan Securities Dealers Association and is regulated by the Financial Services Agency (registration number “Kanto Local Finance Bureau (Financial Instruments Firm) No. 330”); in Korea by JPMorgan Asset Management (Korea) Company Limited; in Australia to wholesale clients only as defined in section 761A and 761G of the Corporations Act 2001 (Cth) by JPMorgan Asset Management (Australia) Limited (ABN 55143832080) (AFSL 376919); in Brazil by Banco J.P. Morgan S.A.; in Canada for institutional clients’ use only by JPMorgan Asset Management (Canada) Inc., and in the United States by JPMorgan Distribution Services Inc. and J.P. Morgan Institutional Investments, Inc., both members of FINRA/SIPC.; and J.P. Morgan Investment Management Inc. In APAC, distribution is for Hong Kong, Taiwan, Japan and Singapore. For all other countries in APAC, to intended recipients only. Copyright 2016 JPMorgan Chase & Co. All rights reserved. MI-PDA-DME-4Q16-E Material ID: 32402f30-825f-11e6-84fc-005056960c8a