Equity Markets: It’s not too early for investors to start positioning their portfolios – JP Morgan

This downturn is different from others in our lifetimes, but making investment decisions based on informed forecasts for the economy and earnings should still work well, according to Lisa Shalett from JP Morgan Asset Management.

Key quotes

“I expect stock market leadership to shift from the consumer-facing tech giants that dominated markets to sectors such as healthcare, financials, and industrials.” 

“We expect corporate earnings to mirror the economic recession, but worse. Morgan Stanley Chief U.S. Equity Strategist Mike Wilson believes that average profits for the companies that comprise the S&P 500 broad market benchmark could decline by 40% to 50% in the second quarter and up to 20% for the full year.”

“Given that markets typically trade-off of future expectations, it’s not too early for investors to start positioning their portfolios now.”