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"I don't think you can treat the world's second-largest economy as either an alternative investment or un-investable, that would be wide of the mark," Bilton said. Uncertainty around monetary policy and a shrinking labor force are further causes for concern, Bilton noted. Some analysts saw this as potential dovish policy shift from the PBOC, which has appeared reluctant to take measures that could boost the struggling economy. Financial bodies including the International Monetary Fund have called for further monetary policy reforms since then. IMF Managing Director Kristalina Georgieva told CNBC this week that China had been advised to make use of more of its available fiscal and monetary policy space.
Persons: Raul Ariano, John Bilton, CNBC's, Bilton, Kristalina Georgieva Organizations: Bloomberg, Getty, JPMorgan Asset Management, People's Bank of, International Monetary Fund, IMF, CNBC Locations: Yuyuan, Shanghai, China, People's Bank of China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe think the Fed will go up to 5.5% by Christmas, says JPMorgan Asset Management's John BiltonJohn Bilton, JPMorgan Asset Management head of global multi-asset strategy, joins 'Squawk Box' to discuss the Fed's rate hike campaign, the global market impact of rate hikes, and more.
Persons: John Bilton John Bilton Organizations: JPMorgan Asset Management
There are good times ahead for the beleaguered 60/40 portfolio, according to a new report from JPMorgan. The 60/40 strategy, known as a balanced portfolio, has had a terrible year amid falling bond prices and stock market volatility. One measure of the portfolio's performance is the iShares Core Growth Allocation ETF , which has a target fixed allocation of 60/40. While inflation is still running hot, the firm expects it to subside over the next two years to reach 2.6%. "Margins will likely recede from today's levels but not reverse completely to their long-term average, and valuations present an attractive entry point," Bilton said.
The forward outlook for investors is the best since 2010, according to JPMorgan Asset Management. This year is on pace to be the worst for stocks since 2008, but the long-term investing outlook is as promising as it's been since 2010, according to JPMorgan Asset Management (JPMAM). Both developments give long-term investors an attractive entry point. That's far lower than the 2.9% growth that the world saw from 2010 to 2020, according to JPMAM's 2021 report. How to invest for the long termInvestors should build long-term portfolios around three asset classes, according to JPMAM: stocks, bonds, and alternative assets.
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