global weekly strategy, strongly recommended...


The J.P. Morgan View
Global Asset Allocation
J.P.Morgan Chase Bank NA
Jan 7, 2011
www.morganmarkets.com
The certifying analyst is indicated by an AC. See page 7 for analyst certification
and important legal and regulatory disclosures.
A good start
• Economics –– Recovery is entering a more mature phase with the services
sector and the US creating new leadership. Continued upside risk on global
growth.
• Asset allocation –– DM sovereign debt and EM inflation remain serious
threats. Underweight markets and sectors vulnerable to them.
• Fixed Income –– Stay underweight peripherals on looming supply. Position for
wider Euro area money market spreads.
• Equities –– We tactically reverse our overweight in EM vs DM equities.
• Credit –– Stay underweight European versus US Banks
• FX –– Dollar rally only a correction in longer-term bear market. Remain short
EUR and GBP on the crosses. Be long CAD.
• Commodities –– Key data due next week from the USDA on grain supply and
demand should be bullish. Stay long grains