YWR: Killer Charts

Disclosure: Personal Views Only. Not investment recommendations.

This week we go through charts from JP Morgan Asset Management.

These charts reinforce a lot of themes we’ve been discussing.

At current valuations China, Europe, Japan, EM, UK have the best probability of generating 7-10% returns long-term.

These next two charts are an important backdrop to the market.

This influences a lot how you are positioned.

The consensus view is growth slows (in response to higher rates) and inflation trends down back to central bankers’ target levels…..

And central bank policy rates can be gradually lowered over the next 2 years.

Yet, survey indicators (PMI’s) in the US and Europe are all bouncing…

Does that mean the recession trade is over?

If the recession trade is over, does the yield curve need to uninvert (steepen)?

Before I go on to the rest of the charts here is a link to all 98 because I can’t go through all of them and there are many more you will find interesting. Maybe make yourself a coffee.