Days of hedging risk with bonds are over, says JP Morgan

INSUBCONTINENT EXCLUSIVE:
decade, alternatives such as private equity and real assets could help juice returns the firm sees draining away from portfolios that
allocate 60 per cent to stocks and 40 per cent to bonds. Strategists at the $2.2 trillion asset manager downgraded their long-term return
targets for bonds as well as risk-parity strategies that rely on fixed-income as the safety valve for stock risk
In a presentation in London Tuesday, they predicted bond yields will remain depressed as global growth languishes around 2 per cent over the
strategy at JPMorgan Asset Management during a press briefing
bonds
assets
estimate of 3.5 per cent
their forecast for private equity returns to 8.8 per cent from 8.25 per cent
according to Karen Ward, chief market strategist for EMEA at JPMorgan Asset
Investors must accept there's a trade-off, she said Tuesday