JPMorgan AM Expects More Turbulent Times in the Markets

A phase of rapid economic growth is almost inevitable in the short term given the level to which activity fell in March and April, estimates JPMorgan AM. The management company anticipates that consumer spending will continue to drive overall growth in the months to come.

The fundamentals of consumption were sustained during the recession thanks to outsized state transfers, the high level of “forced savings” linked to containment measures, the extreme volatility of the labor market and the dynamics of general consumer sentiment, observes JPMorgan AM.

According to the manager, the dominant scenario of the market should move from the immediate phase of economic rebound (during which exposure to equities has its tactical preference) to a more volatile period evolving in a sawtooth pattern, fraught with downside risks (at during which long credit positions would have attractive forecast performance).

Diminished visibility on the direction of the dollar in the short term, associated with a phase of rapid progression of the economic cycle, suggests to distribute its equities exposures on the markets, completes JPMorgan AM.

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JPMorgan AM Expects More Turbulent Times in the Markets - /10

Summary

Activity fell in March and April, estimates JPMorgan

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