Patrik Schowitz, a global multi-asset strategist at JP Morgan Asset Management, upgraded the outlook on global equities, in his latest client note published on Monday.
The shift in the view is mainly in response to hopes for a breakthrough in Sino-US trade talks, reduced risk of a US recession and a moderately positive earnings outlook.
Key Quotes:
“We have held a cautious view on the outlook for equity markets for much of this year… however, the environment has shifted in recent weeks.”
“That change likely reflects several factors, which we think has some more room to run.”
“Emerging market equities are now our most favored region alongside U.S. large cap equities, which we believe can do relatively well under a range of scenarios.”
“Our least preferred markets are Australia and U.S. small cap equities.”
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