Confidence in the economic outlook is strong

J.P. Morgan Asset Management ‘Global Asset Allocation Views’ – Q2 2021

Beneath the surface, while confidence in the economic outlook is strong, expectations for asset returns are rather more circumspect. Even those who are overwhelmingly positive on the economy accept that expressing such a view in portfolio positioning now requires a more clinical approach than merely buying stocks and selling bonds.

Europe

Regions such as Europe that are likely at peak pessimism now over vaccine delays seem poised to accelerate later in the year. By contrast, the leadership by Asian economies that was especially strong in 2020 may moderate a little…