Displaying items by tag: jp morgan

Markets were flummoxed early this week with the growing Omicron Covid-19 variant spreading rapidly in pockets globally. Despite these growing concerns and a seemingly endless pandemic, the JPMorgan is calling for a big 2022. With one of the absolute highest predictions on wall street JPMorgan is calling for a 5050 S&P 500 to end 2022. Easing supply chains, earrings growth and a more stable China are the key parts of their prediction for a successful equity market in 2022. Even if investors overweight China in their portfolios, the biggest threat will be domestically. A hawkish turn by the Fed would be detrimental to their prediction and is still the largest sort of risk in JPMorgans eyes.

FINSUM: Powell is talking tapering and rate rises just as Omicron is spreading which could be the perfect storm for a bad Q1 in 2022.

(New York)

Emerging markets are a key part of a well-diversified growth portfolio, but Covid has hindered how many…see the full story on our partner Magnifi’s site.

(New York)

For anyone who has enjoyed the big rally in tech shares after the rough February through March period, JP Morgan has bad news…see the full story on our partner Magnifi’s site

(New York)

JP Morgan put out an interesting recommendation to investors recently. They said the best place to make money in the recovery might not be in the US, but rather in international stocks. According to Gabriela Santos, global market strategist at JP Morgan Asset Management, “When you have a cyclical recovery like we expect in 2021, it’s really international’s time to shine … We think it’s really important for investors to have a balance between U.S. equity exposure and international exposure as we go into the year of the vaccine for 2021”. The key argument here is that international indexes are more dominated by cyclical stocks than tech, and those are the share poised to really gain as the vaccine plays out.

FINSUM: This is all pretty basic. International indexes have not recovered as much as US stocks, and are composed of companies that are likely to start outperforming at this stage of the recovery. Europe in particular seems to be a good bet.

(New York)

For those interested in dividend investing, REITs have always been a key area. While rate sensitive, they can also provide strong and steady income streams. REITs may seem particularly risky as a whole right now because of the ongoing reckoning in commercial real estate as a result of the pandemic, but there are still some good opportunities to be had. The reason why is that REIT dividends, which have fallen 20% since the beginning of COVID, have likely hit their floor. JP Morgan says “that the current 3.5% dividend yield for the REIT group should be sustainable at this point.” Some of JPM’s best REIT picks right now include Brandywine Realty Trust (BDN, yielding 7.6%), Four Corners Property Trust (FCPT, 5.5%), Welltower (WELL, 5%), Medical Properties Trust (MPW, 6%), and W.P. Carey (WPC, 6.3%).

FINSUM: As obvious as it is to say, in our view, the key to REITs right now is the area of real estate they focus on. Mall REITS—probably not, storage/industrial RETS—much better.