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Can markets climb the wall of worry?Video

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Player Id: bb60d070-b695-4c55-9162-a421ad370a53

Video ADA Text: Can markets climb the wall of worry? video

Transcript Browser Title: Video transcript: Can markets climb the wall of worry? video

Description: From government shutdown fears to surging bond yields, there’s plenty for investors to fret about – but there’s also reason for optimism.

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Video Id: 6338009175112

Audio Description Video Id: 6338008586112

Length (seconds): 95

Transcript: <h2>Side note:</h2> <p>Background music plays.</p> <h2>On screen:</h2> <p>A woman with dark, shoulder-length hair, Rebeca Solberg, smiles brightly as she speaks from an office with natural wood accents and plants.</p> <h2>Side note:</h2> <p>A disclaimer appears in a text box:</p> <h2>Text on screen:</h2> <p>INVESTMENT AND INSURANCE PRODUCTS:</p> <ul> <li>NOT A DEPOSIT</li> <li>NOT FDIC INSURED</li> <li>NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY</li> <li>NO BANK GUARANTEE</li> <li>MAY LOSE VALUE</li> </ul> <h2>Rebecca Solberg:</h2> <p>Here are your Top Market Takeaways.</p> <h2>On screen:</h2> <p>A circle with a title expands: 'Top Market Takeaways.'</p> <h2>Text on screen:</h2> <p>Text appears below the speaker: 'Rebecca Solberg, Global Investment Strategist, J.P. Morgan Wealth Management. September 29th, 2023.'</p> <h2>Rebecca Solberg:</h2> <p>In the latest Fed meeting, the Fed kept interest rates unchanged and signaled one more rate hike by the end of this year. In the aftermath of the release, stocks and bonds both finished lower, with the two-year treasury hitting the highest level since 2006.</p> <h2>Text on screen:</h2> <p>Text appears in a white box over black: 'So why did the market sell off?'</p> <h2>Rebecca Solberg:</h2> <p>The Fed released their quarterly Summary of Economic Projections, which is essentially the Fed’s forecast for GDP, inflation, and policy rates. While inflation expectations say the same as the June release, the rosier expectation for growth led the Fed to take 50 basis points of cuts off the table for 2024.</p> <h2>On screen:</h2> <p>A line graph is titled 'The Fed Hits &quot;Pause:&quot; Fed funds rate and FOMC median dot plot projection, percentage.' The line starts near 4.5% in '06, drops to just over 0% from '09 to '16, climbs to 2.5% in '19, drops again until '22, and then rises steeply to about 5.5% percent in '23. Dot projections show the rate dropping steadily through 2026, landing at about 2.5% for the longer-run.</p> <h2>Rebecca Solberg:</h2> <p>The punchline: Restrictive policy rates are here to stay.</p> <h2>Text on screen:</h2> <p>More text appears over black: 'What is the big picture?'</p> <h2>Rebecca Solberg:</h2> <p>The Fed’s dual mandate is maximum employment and stable prices.</p> <h2>On screen:</h2> <p>A line graph is titled 'Sticky Core Inflation (Less Food and Energy) Continues to Cool.' Two lines illustrate 'Consumer Price Index, YOY, percentage.' The 'CPI All Items' line climbs to about 9% in summer of '22, then drops down to near 3% by July of '23 before starting another gradual climb. The 'CPI Less Food and Energy' line follows nearly the same curve with lower percentages, topping out at about 6% in 2022, but not falling as low as the 'All Items' line in summer of '23.</p> <h2>Side note:</h2> <p>Small print text appears:</p> <h2>Text on screen:</h2> <p>'Sources: Bloomberg Finance L.P. Data as of September 13th, 2023.'</p> <h2>Rebecca Solberg:</h2> <p>Yes, they’re making progress with core inflation well below the 2022 peaks, although they are not out of the woods yet.</p> <h2>Text on screen:</h2> <p>Text reads: 'What does it mean for investors?'</p> <h2>Rebecca Solberg:</h2> <p>We think the Fed’s policy rate is restrictive and inflation should come lower from here. That said, stocks and bonds may be volatile in the Fed’s final fight to the finish line. Volatility comes with investing, and we recommend keeping your goals top of mind. We think a couple of key strategies are worth considering.</p> <h2>On screen:</h2> <p>A bulleted list appears beside a magnifying glass:</p> <h2>Text on screen:</h2> <p>'Key Takeaways.'</p> <ul> <li>Step out of cash and lock in elevated yields for longer.</li> <li>Rebuild equity exposure focusing on active factors and themes.</li> </ul> <h2>On screen:</h2> <p>A logo appears over black:</p> <h2>On screen logo:</h2> <p>'J.P. Morgan Wealth Management.'</p> <h2>Rebecca Solberg:</h2> <p>To learn more, please visit chase.com/theknow.</p> <h2>Side note:</h2> <p>Legal disclosures:</p> <h2>Text on screen:</h2> <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 trusted 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><strong>Investing in securities involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Outlooks and past performance is not a guarantee of future results.</strong></p> <p>Investment in alternative investment strategies is speculative, often involves a greater degree of risk than traditional investments including limited liquidity and limited transparency, among other factors and should only be considered by sophisticated investors with the financial capability to accept the loss of all or part of the assets devoted to such strategies.<br /> </p> <p><strong>Asset allocation/diversification does not guarantee a profit or protect against loss.</strong></p> <p>J.P. Morgan Wealth Management is a business of JPMorgan Chase &amp; Co., which offers investment products and services through J.P. Morgan Securities LLC (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.<br /> </p> <p>Copyright {{copyrightCurrentYear}} JPMorgan Chase &amp; Co.</p>

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