Richard Madigan, CIO at J.P. Morgan Private Bank, thinks there are some big differences between what we're seeing now and what we saw in the mid-to-late 1990s.
"We came into this year expecting markets to be more volatile based on the fact that they, like the global recovery, are transitioning to a more normal environment," he
told Business Insider.
"We're already seeing indications of this as volatility has already picked up across asset classes.
Consensus opinion is currently pointing to emerging markets as the cause."
has "significantly reduced investments in foreign currencies, commodities, EM debt and EM equity markets" over the last year.
And in some instances they "cut 10% to 15% of portfolio exposure.
is watching the emerging markets space for attractive entry points, he
says, "we don't believe now is the time to be adding back to investment positions."
With that as a frame of reference, we looked at the latest J.P. Morgan Private Bank
Market Outlook report (published January 15) aimed at its wealthiest clients.
In it Madigan
writes that his
outlook for the year is "built around the continuation of a slow-but-steady global recovery.