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What Alts Investors Are Looking at Now: J.P. Morgan

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J.P. Morgan Asset Management released its annual global alternatives outlook report this week, as investors face stretched valuations in traditional markets, limited correlation benefits between fixed income and equities, and persistently low bond yields with asymmetric risk.

“In this environment, alternatives, perhaps once considered optional in investors’ portfolios, have become essential,” Anton Pil, JPAM’s head of alternatives, said in a statement.

The new report follows JPAM’s latest long-term capital market assumptions report, published in November, that said the impetus to move beyond the 60/40 stock/bonds mix had grown stronger during the pandemic, and the use of alternatives to provide income and diversification was more imperative than ever. 

Earlier this month, BlackRock suggested the traditional 60/40 portfolio will not only fail to deliver the moderate returns of the past, but actually increase investment risk.

Here’s a look at JPAM analysts’ views on several alternatives sectors.

— Check out Ric Edelman: 12 Predictions for Bitcoin, Other Cryptos in 2021 on ThinkAdvisor.