JPMAM multi-asset team moves underweight duration for first time since 2014

Adopted 'pro-risk' tone

J.P. Morgan Asset Management's (JPMAM) global multi-asset team has moved the strategy underweight duration for the first time since 2014, while it has also moved underweight emerging market debt and reduced credit exposure.

In a quarterly update distributed to clients, the team said it is maintaining its small overweight position in equities but reducing some fixed income exposure as they adopt a "pro-risk tone" in portfolios. The team's global head of strategy John Bilton said: "2016 marks a profound shift in the underlying economic environment—from monetary to fiscal primacy. "Pro-cyclical fiscal stimulus is uncharted territory, but thus far the reaction of the S&P 500 and the Russell 2000 - up 3% and 11%, respectively, since the US election - suggests markets are prepared to give it the benefit of the...