JPMorgan Cuts Equities in Asset Allocation on Virus Fallout
- Significant chance of reacceleration in new cases: strategists
- Corporate bonds boosted to -5% from -7% in allocation
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Investors should tamp down on risk in their portfolios as the economic impact from the coronavirus unfolds, according to JPMorgan Chase & Co.
Markets could be left vulnerable to coronavirus troubles in China, strategists including Nikolaos Panigirtzoglou, Marko Kolanovic and John Normand wrote in a note late Wednesday. They recommended reining in portfolio risk by trimming their overweight call on equities to 5% relative to a benchmark allocation from 7%, and cutting the underweight on corporate bonds to minus 5% from minus 7%.