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Navigating rate risks: How bonds are better positioned in 2025Video

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Video ADA Text: Navigating rate risks: How bonds are better positioned in 2025 video

Transcript Browser Title: Navigating rate risks: How bonds are better positioned in 2025 video

Description: Higher yields make bonds a strategic choice for investors looking to navigate the complexities of rate changes and Trump administration policies in 2025.

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Video Id: 6369400964112

Audio Description Video Id: 6369401153112

Length (seconds): 186

Transcript: <p>[neutral background music]</p> <h2>On screen:</h2> <p>This video opens in an office with a textured wall, where a man in a suit stands behind a desk with a mug, laptop, and notes.</p> <h2>Logo:</h2> <p>A J.P. Morgan Wealth Management logo remains in an upper corner.</p> <h2>Side note:</h2> <p>A bold disclaimer in a text box reads:</p> <h2>On screen:</h2> <p>INVESTMENT AND INSURANCE PRODUCTS:</p> <ul> <li><p><strong>NOT A DEPOSIT</strong></p> </li> <li><p><strong>NOT FDIC INSURED</strong></p> </li> <li><p><strong>NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY</strong></p> </li> <li><p><strong>NO BANK GUARANTEE</strong></p> </li> <li><p><strong>MAY LOSE VALUE</strong></p> </li> </ul> <h2>Vinny Amaru:</h2> <p>Here are your Top Market Takeaways.</p> <h2>On screen:</h2> <p>A tan circle with a title expands:</p> <h2>On screen:</h2> <p>Top</p> <p><strong>MARKET</strong></p> <p><strong>TAKEAWAYS</strong></p> <p><strong>FEBRUARY 28, 2025</strong></p> <h2>On screen:</h2> <p>Identifying text appears beside the speaker:</p> <h2>On screen:</h2> <p><strong>VINNY AMARU</strong></p> <p>GLOBAL INVESTMENT STRATEGIST</p> <p>J.P. MORGAN WEALTH MANAGEMENT.</p> <h2>Vinny Amaru:</h2> <p>It's been just over 30 days since President Trump began his second term, and it's been quite a whirlwind. He's signed more executive orders in this short time than any previous president over a similar timeframe.</p> <h2>On screen:</h2> <p>A line graph appears with the heading: 'Cumulative number of executive orders signed (since 1937).' The vertical axis ranges from zero to 120 executive orders while the horizontal axis ranges from zero to 100 Days in Office. A red line labeled 'Trump 2nd' climbs sharply, ending at 65 less than 30 days in. A teal line labeled 'Roosevelt 3rd' reaches that amount at about 50 days in office, then continues to climb to near 100 after 100 days in office. Biden's navy-blue line levels out around 40. Several more unlabeled lines remain under 20 through 100 days in office.</p> <h2>Side note:</h2> <p>Small print text reads:</p> <h2>On screen:</h2> <p>Sources: Federal Register, Data accessed February 18, 2025.</p> <h2>Vinny Amaru:</h2> <p>Let's take a look at some of the major themes emerging in the early days of the Trump administration.</p> <h2>On screen:</h2> <p>A question appears over gray:</p> <h2>On screen:</h2> <p>What are the latest developments regarding tariffs?</p> <h2>Vinny Amaru:</h2> <p>The U.S. has imposed a 10% additional tariff on imports from China.</p> <h2>On screen:</h2> <p>A circle chart with inward-pointing arrows appears under the heading 'U.S. Tariffs.' A section fills in, labeled: '10% Imports from China.'</p> <h2>Vinny Amaru:</h2> <p>In response, China has retaliated with a 15% tariff on around $5 billion dollars of its U.S. energy imports and a 10% tariff on U.S. agricultural and oil equipment.</p> <h2>On screen:</h2> <p>Two more charts appear under the heading 'China Tariffs.' One with a lightning bolt reads:</p> <h2>On screen:</h2> <p>15%</p> <p>U.S. energy imports</p> <h2>On screen:</h2> <p>While one with a tractor reads:</p> <h2>On screen:</h2> <p>10%</p> <p>U.S. agriculture and oil equipment</p> <h2>Vinny Amaru:</h2> <p>President Trump has announced a 25% tariff on imports of steel and aluminum, a reciprocal tariff to be implemented in April as well as additional tariffs on pharmaceuticals, semiconductors, and automobiles.</p> <h2>On screen:</h2> <p>A list appears, titled:</p> <h2>On screen:</h2> <p>Additional U.S. Tariffs</p> <ul> <li>25% on imports of steel and aluminum</li> <li>Reciprocal tariff to be implemented in April</li> <li>Pharmaceuticals</li> <li>Semiconductors</li> <li>Automobiles</li> </ul> <h2>Vinny Amaru:</h2> <p>The administration has also delayed a 25% tariff on most imports from Canada and Mexico until early March. In terms of the economic impact, we expect tariffs to slightly boost inflation, both this year and next, and have a more limited impact on U.S. economic growth. But with more tariffs and potential retaliation on the way, trade uncertainty is expected to remain high, and while global equity markets have mostly looked through the headlines, we see tariffs as an important risk to our otherwise positive U.S. equity market view.</p> <h2>On screen:</h2> <p>Another question appears over gray:</p> <h2>On screen:</h2> <p>What is the economic impact of current immigration policies?</p> <h2>Vinny Amaru:</h2> <p>The administration is focused on reducing legal immigration and enforcing stricter measures on undocumented workers. While these actions are unlikely to immediately disrupt the labor market balance, we'll be looking for any disruptions, especially in sectors like construction and agriculture.</p> <h2>On screen:</h2> <p>A question over gray reads:</p> <h2>On screen:</h2> <p>How did the Trump administration approach government efficiency and deregulation?</p> <h2>Vinny Amaru:</h2> <p>From creating a department dedicated to increasing efficiency to lifting restrictions on drilling in Alaska, the new administration is looking to shift the way that government and private businesses interact. So far, business optimism has risen due to the possibility of easier regulations that could boost deal-making. Needless to say, there's certainly a lot going on, and for investors, heightened uncertainty is a good reminder to re-examine existing portfolio allocations.</p> <h2>On screen:</h2> <p>A circle graph appears, titled: 'Well-diversified portfolio.' An arrow labeled 'Public Equities' appears on one side, with the circle broken into three sections:</p> <h2>On screen:</h2> <p>UNITED STATES</p> <p>ASIA PACIFIC</p> <p>EUROPE</p> <h2>Vinny Amaru:</h2> <p>A well-diversified portfolio, incorporating a geographic mix of equities, can help capture returns during periods of strong economic growth.</p> <h2>On screen:</h2> <p>Another arrow appears, labeled 'Bonds.' Three more sections appear in the circle chart, labeled:</p> <h2>On screen:</h2> <p>CORPORATE</p> <p>MUNICIPAL</p> <p>GOVERNMENT</p> <h2>Side note:</h2> <p>Small text reads:</p> <h2>On screen:</h2> <p>For illustrative purposes only.</p> <h2>Vinny Amaru:</h2> <p>Meanwhile, bonds can play a vital role in providing a steady stream of income and serving as a safeguard against potential growth slowdowns. This balanced approach can enhance resilience during market volatility, helping to keep your investments aligned with your long-term financial objectives.</p> <h2>On screen:</h2> <p>A list with three bullet points appears under a heading:</p> <h2>On screen:</h2> <p>Key Takeaways</p> <ul> <li>Tariffs, immigration, government efficiency and deregulation are the main themes emerging from the first 30 days.</li> <li>We expect continued uncertainty in the coming months, especially on trade policy.</li> <li>Building resilient portfolios is essential for navigating potential market volatility.</li> </ul> <h2>Vinny Amaru:</h2> <p>To explore more, please visit CHASE.COM/THEKNOW</p> <h2>On screen:</h2> <p>A logo appears over gray:</p> <h2>Logo:</h2> <p>J.P. Morgan WEALTH MANAGEMENT.</p> <h2>On screen:</h2> <p>To explore more, visit CHASE.COM/THEKNOW</p> <h2>On screen:</h2> <p>An oval around the URL turns from white to blue.</p> <h2>Side note:</h2> <p>Legal disclosures:</p> <h2>On screen:</h2> <p>All market and economic data are sourced from Bloomberg Finance L.P. and FactSet unless otherwise stated.</p> <p>The views, opinions, estimates and strategies expressed herein constitutes the speaker's judgment based on current market conditions and are subject to change without notice, and may differ from those expressed by other areas of J.P. Morgan. This information in no way constitutes J.P. Morgan Research and should not be treated as such. You should carefully consider your needs and objectives before making any decisions --including whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with any investment or financial service, product or strategy prior to making an investment decision. For additional guidance on how this information should be applied to your situation, you should consult your advisor.</p> <p>The (in bold) <strong>S&amp;P 500 Index</strong> is an unmanaged broad-based index that is used as representation of the U.S. stock market. It includes 500 widely held common stocks. Total return figures reflect the reinvestment of dividends. &amp;&quot;S&amp;P500&amp;&quot; is a trademark of Standard and Poor's Corporation.</p> <p>Investing in securities involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. (In bold) <strong>Outlooks and past performance is not a guarantee of future results.</strong></p> <p>(Also in bold) <strong>Past performance is no guarantee of future results.</strong> It is not possible to invest directly in an index.</p> <p>The price of equity securities may rise or fall due to the changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Equity securities are subject to &quot;stock market risk&quot; meaning that stock prices in general may decline over short or extended periods of time.</p> <p>Bonds are subject to interest rate risk, credit and default risk of the issuer. Bond prices generally fall when interest rates rise.</p> <p>Investments in commodities may have greater volatility than investments in traditional securities, particularly if the instruments involve leverage.</p> <p>Asset allocation/diversification does not guarantee a profit or protect against loss.</p> <p>J.P. Morgan Wealth Management is a business of JPMorgan Chase &amp; Co., which offers investment products and services through (in bold) <strong>J.P. Morgan Securities LLC</strong> (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase &amp; Co. Products not available in all states.</p> <p>Copyright {{copyrightCurrentYear}} JPMorgan Chase &amp; Co.</p>

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