MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Interview With George Gatch, CEO of J.P. Morgan Asset Management - Barron’s

hank
edited February 11 in Other Investing
The following link may work for a limited time - or may not work at all. It’s a thoughtful interview. Some relevant excerpts in case the link fails to work.

https://www.barrons.com/articles/stock-market-investing-risk-jp-morgan-asset-management-e7e3e686?st=quL7MV&reflink=desktopwebshare_permalink

On Staying Invested: “Staying invested is the best strategy. If you missed the 10 best days in the past 20 years, you would have cut your return in half.”

Best Opportunities Now: “We see opportunities to broaden toward value in large-cap stocks and across all sectors. And, we see opportunities in mid-caps relative to large-caps …. Fixed income, on a relative basis, is more attractive than equities. We see opportunities in high-yield, where yields are topping 7%, and in securitized credit.”

Current Environment: ”There is room in every portfolio for some position in liquidity. In a market like this, we are going to have higher levels of volatility. Having dry powder to redeploy, as you see more volatility and trade-offs, is good.”

Next Frontier: ”Multi-asset is one of the next frontiers that hasn’t been fully offered to investors in ETF structures. It is difficult for individual investors to make decisions about relative valuations of asset classes in periods of high volatility.”

On Bitcoin & Crypto: ”Bitcoin ETFs and cryptocurrency generally have high levels of volatility. Bitcoin is four times the volatility of the S&P 500 index. There is no income and no intrinsic value, and we don’t see how they would fit into a diversified long-term strategy.”


Article Title: ”Investing Offers a Free Lunch, Says This Wall Street Veteran. Take It.”
Published in Barron’s February 10, 2025 issue

Comments

  • PRESSmUPPRESSmUP
    I give JPM credit for coming up with several innovative products to generate income in a portfolio, for both equities and fixed income within actively managed ETF wrappers.
  • ShostakovichShostakovich
    edited February 11
    Jamie Dimon, and now Gatch, have routinely come out against crypto.

    "Stay invested" but "have dry powder"....I guess "stay invested" is vs. "getting totally out of the market".

    "Large caps look good; mid caps look good....".
  • hank
    edited February 12
    Shostakovich said:

    Jamie Dimon, and now Gatch, have routinely come out against crypto. "Stay invested" but "have dry powder"....I guess "stay invested" is vs. "getting totally out of the market". "Large caps look good; mid caps look good....".

    Yup. I wondered too. I think he’s speaking to folks who might panic on some news and pull 100% out of the markets. (The “in & out” crowd). He finds that approach very detrimental to long term return. However, Gatch doesn’t object to holding a cash stash as part of overall plan.

    I currently have 12% split among money markets and a couple short term bond funds. That’s the “dry powder” part of the portfolio. But, in reality, north of 40% is invested in fixed income according to Fido’s analytics. That’s due to the fact that some allocation funds include fixed income as part of their strategy.

    BTW: In the longer conversation Gatch comments a bit on JPIE. I don’t own it. But I know many here do. Sounds like a well run fund.
Sign In or Register to comment.