2023-10-25 17:59:27
JP Morgan has proposed in a report a portfolio composed of stocks and bonds in a 60/40 ratio, considering that it would have an Internal Rate of Return (IRR) of 7% fifteen years from now.
The firm has detailed in a press release that the study – called ‘2024 Long-Term Capital Market Assumptions’ or LTCMA – is done under the premise of providing ideas that allow building smarter portfolios in a context of transition from disinflation to inflation. reflation, as well as from an accommodative policy to an increase in capital costs.
In this sense, the American manager has pointed out that adding a 25% allocation to alternative assets (which are neither stocks nor bonds) can increase the profitability of a 60/40 portfolio by 60 basis points and improve the sharpe ratio. by approximately 12%.
Long-term growth prospects have improved slightly, according to JP Morganthanks to the positive repercussions of automation and artificial intelligence on productivity, while the energy transition and the emergence of new technologies are also other variables to follow in search of investments.
The global director of Investment strategy at JP Morgan private banking, Grace Peters, has pointed out that “this year the conclusions [del informe] “They offer clients a very strong argument about the power of diversification in an ever-changing world.”
The global director of investment strategy in JP Morgan Private banking has indicated that this transition forces investors to form solid portfolios that can face these challenges, expanding opportunities through alternatives and greater international exposure, to enhance returns and diversification.
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