Economic Affairs

Silver lining to economic storm clouds

Recent sell-off in the markets promises better long-term returns, says JP Morgan’s chair of global research Joyce Chang

Dramatic re-pricing of stock and bond markets this year has greatly improved the outlook for future returns. PHOTO: AFP
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Economic forecasts have been downgraded this year for all parts of the world except Latin America, but a global recession is unlikely. With inflation remaining elevated and running ahead of central bank targets, interest rate increases will continue into next year and policy easing is not on the horizon. China's economic slowdown will significantly affect Asia. Energy markets will remain tight, prompting fresh doubts about the feasibility of countries reaching their zero-emissions targets. But the silver lining for investors in all the bad news is that the dramatic re-pricing of stock and bond markets this year has greatly improved the outlook for future returns.

That is the broad prognosis for the global economy and markets from Ms Joyce Chang, chair of global research at JP Morgan's Corporate and Investment Bank, who has been rated as one of the top 25 most powerful women in finance by American Banker magazine and among the world's 100 most influential women in finance by Barron's.

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