J.P. Morgan Asset Management - The investment implications of COVID-19: An update - March 2020
12 March 2020
While this is a global health crisis with very significant human and economic impacts, it is important for investors to consider the issue and its implications in a disciplined and calm manner. A good way to do this is look at:
_______________________________________________________________________
For more information about JP Morgan funds visit www.jpmorganassetmanagement.lu/
- Updated numbers and trends in the COVID-19 pandemic
- Potential economic impacts
- Monetary and fiscal policy responses
- The longer-term economic outlook
- Investment implications
- The COVID-19 crisis confirms, once again, the value of a diversified portfolio as gains in Treasury bonds have, to some extent, offset stock market losses.
- The current crisis also reminds us of the value of high-quality assets. A crucial first step for any company to thrive in a rebound is to be able to survive a downturn.
- The crisis should prove the value of active managers, as skilled investors adjust portfolios both to weather the storm but also to take advantage of the altered economic and social landscape that is likely to follow.
- Finally, the crisis will underscore the importance of valuations across financial assets. The last few years - relatively calm years from an economic perspective - have allowed some valuations to become unhinged from others with investors generally paying a premium for hopes and dreams and demanding a discount for prudence. This crisis reminds us that no single aspect of an investment is as important as the ability to get in at a reasonable price at the start. No matter how volatile financial markets are in the weeks ahead, opportunities will emerge for investors who can think and act with discipline in an increasingly emotional environment.
Important information
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose 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 examples used are generic, hypothetical and for illustration purposes only. 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. 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. 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 yields are not reliable indicators of current and future results.March 2020
Please note that these are the views of Dr. David Kelly, Chief Global Strategist and Head of the Global Market Insights Strategy Team for J.P. Morgan Asset Management and should not be interpreted as the views of RL360.
Text section 2 not found