JPMorgan: Postpone the 2020 recession

04.02.2019 / 05:59

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According to JPMorgan Chace & Co, the Fed's mood swings will lead to a reassessment of the moves by investors in a seemingly ending investment cycle.

This means that market participants should not be subject to fears of recession for the time being.

Federal officials have signaled that they will not raise the key interest rate for the moment, and that they retain flexibility in their ability to reduce the balance. The change was already warmly welcomed by investors such as the S & P500 as a result of which it recorded a growth of 2.5% for the last three sessions. Demand for gold has also increased.

According to JPMorgan, investors will have to prepare for more defensive positions in the second half of 2019 to be ready to face the "big challenges" in 2020.

Cyclically-oriented stocks such as S & P500, Chinese stocks, Topix and other broad indices are currently traded as if world growth was lower than the current 2.6%.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

Trader Martin Nikolov

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JPMorgan: Postpone the 2020 recession

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