Active Asset Allocation As Alpha Driver in 2017

Patrik Schöwitz, Global Multi-Asset Strategist, J.P. Morgan Asset Management speaks to Julie Cooling, Founder and CEO, RIA Channel regarding their capital market research and current market valuations. J.P. Morgan Asset Management produces an annual long-term capital market assumptions (LTCMA) report for investors on their site. After an incredibly long bull market, Schowitz is somewhat pessimistic regarding 2017 return expectations, calling 5% the new 8%. He points to demographics as a key driver, along with lower productivity, a long bull market and prolonged, excessive valuations. Schowitz emphasizes how crucial active asset allocation will be to access alpha sources in 2017 and the coming years. The research report is available here: 2017 J.P. Morgan LTCMA.