JPMorgan not positive on risky assets over next 12 months

JPMorgan’s Global Head of Macro Quantitative and Derivatives Strategy Marko Kolanovic is not positive on the performance of risky assets and the broader macro outlook over the next 12 months. The firm expects both inflation data and economic demand to soften in 2024. The strategist believes the “interest rate shock” from the past 18 months will negatively impact economic activity. Geopolitical developments are an additional challenge while valuations of risky assets are expensive on average, the strategist tells investors in a research note. Regardless of whether a recession happens or not, the risk/reward in equities and other risky assets is worse than in cash or bonds, the firm contends.