Halister News

(Bloomberg) -- JPMorgan Asset Management is neutral on stocks and bonds, and prefers to invest in corporate debt, global market strategist Vincent Juvyns says in a phone interview.

• Favors euro-area corporate bonds in medium term, especially high yield and IG; also sees upside potential in peripheral government bonds
• Time to be selectively overweight on EM asset classes, especially in EMD corporates and local rates
• Recent market selloff has been triggered by a lack of action at the ECB’s latest meeting
  • “Nothing big is happening”; market sentiment remains pretty much dependent on the central bank decisions
• Monetary policy alone can’t stimulate growth and many central banks are probably drawing this conclusion
  • More fiscal easing will be needed to stimulate the economy; globally, there’s already a shift from monetary policy to fiscal policy
  • More focus on fiscal policies would stimulate growth and would ultimately prove positive for the euro-area economy