Investors need to allocate their portfolios carefully since market volatility will continue over the next few years, according to JP Morgan Asset Management.
“There will be a lot of volatility in the next few years, and you need to try and take advantage of that within your portfolios,” said JP Morgan's head of Asia product and distribution strategies within the global FICC group, Robert Stewart, speaking at an adviser briefing in Sydney yesterday.
“The high-yield [bond] market for example will turn over at some point, and you will see a correction in pricing, but that will probably be associated with a US recession.
“That’s probably not likely to occur until 2018-19 at the earliest. You have to be dynamic in how you allocate across the markets," he said.
Mr Stewart also questioned whether interest rates would rise in the near future.
“I’m not convinced myself that we’re going to see meaningful interest rate rises on a global basis in the near future and maybe not for the next couple of years really,” Mr Stewart said.
“I think the US will increase interest rates, but it will be very slow and very gradual.”
Read more:
Local Government Super appoints head of advice
ETF sector hits $21.8bn in April
Ratings downgrade a 'real risk': AMP Capital
Australian Ethical has released its guidance for the 12 months leading up to June, expecting its full year underlying net profit after tax t...
The major bank has announced additional charges of $525 million after tax in connection with increased provisions for its customer-related r...
The Commonwealth Bank has advised that it will begin a reimbursement process to current and former staff for lost wages from next week. ...
