The Jp Morgan View

Pretty much in-line with the standard view on Wall Street these days – buys stocks, sell bonds, buy commodities, etc. (via JPM):

• Economics

Our Japan growth forecast is raised, but the UK is cut. Our global growth forecast for 2011 is unchanged at 3.5%.

• Asset allocation

Our top performers for 2011 should be equities and high-yield. But do include commodities on tight supplies and their good diversification value against certain inflation and political risks.

• Fixed Income

We go short duration in Treasuries, with yields near the bottom of their recent range.

• Equities

Rising geopolitical and inflation risks favours an OW in Commodity sectors and an UW in EM equities.

• Credit

Overweight high quality CMBS as property prices recover and vacancy rates decline

• FX

Be long EUR/USD, and short GBP versus EUR, SEK and CAD.

• Commodities

OPEC likely to increase production gradually from here, but we still expect Brent to break well over $100 this year.

Source: JPM

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by Andrew Wilkinson, Senior Market Analyst at Interactive Brokers

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