Outlook for long-term capital market returns optimistic
The caveat is the entry price; JP Morgan Asset Management study update was based on March 31 prices.
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LONG-term investors may take heart: Amid the bleak economic outlook and an uncertain asset market backdrop due to Covid-19, JP Morgan Asset Management has published an optimistic assessment for long-term capital market returns.
Long-term return expectations for almost all asset classes, except US Treasuries, have improved, said the firm in a mark-to-market update of its 2020 Long-Term Capital Market Assumptions (LTCMA) report. Expected returns for stocks, for example, have risen across the board by between 100 and 250 basis points.
The caveat is that the "off-cycle" update is based on March 31 asset prices. It takes into account the "wild" market moves in March, when global equities swung from bull- to bear-market territory in record time.
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