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Key takeaways

  • J.P. Morgan Research sees only a modest risk the global economy slides into recession in the near term but is forecasting an end to the global expansion by mid-2025.
  • Stubborn inflation, above central bank comfort zones, is expected to keep rates higher-for-longer. Current market expectations for an early start to developed market (DM) easing cycles are likely to be disappointed.
  • A more challenging macro backdrop is anticipated for equity markets in 2024. Lackluster earnings growth and geopolitical risks are set to weigh on the outlook for stocks. J.P. Morgan analysts estimate S&P 500 earnings growth of 2–3% and a price target of 4,200, with a downside bias.

“As we approach 2024, we expect both inflation data and economic demand to soften, as the tailwinds for growth and risk markets are fading. Overall, we are cautious on the performance of risky assets and the broader macro outlook over the next 12 months, due to building monetary headwinds, geopolitical risks and expensive asset valuations.” 

Marko Kolanovic

Chief Global Markets Strategist and Global Co-Head of Research, J.P. Morgan

Global market  outlook 

2023 started with low and declining expectations for global growth and heightened fears of a recession. however, china’s reopening, large fiscal stimulus in the u.s. and europe, and the residual strength of u.s. consumers stabilized growth. additional market optimism was related to chatgpt , luxury goods , weight-loss drugs , the expectation of federal reserve (fed) rate cuts and the bitcoin rally, resulting in a broadly positive performance for risk markets. that was despite the largest increase in interest rates in decades, major wars, an energy crisis, a regional banking crisis, recession in parts of the eurozone and emerging signs of credit and consumer deterioration in the u.s., contemporaneous positive economic data was enough to lift risk markets, which could be seen as complacency against a backdrop of declining consumer strength and increased credit stress (e.g. rising credit card and auto loan delinquencies). household liquidity trends indicate that for 80% of consumers, excess savings from the covid era are already gone, and by mid-2024 it is likely that only the top 1% of consumers by income will be better off than before the pandemic. , “we expect both inflation data and economic demand to soften in 2024. should investors and risky assets welcome an inflation decline and bid up bonds and stocks, or will the fall in inflation indicate the economy is sliding toward a recession we think the decline in inflation and economic activity we forecast for 2024 will at some point make investors worry or perhaps even panic,” said marko kolanovic, chief global markets strategist and global co-head of research at j.p. morgan. , “overall, we are not positive on the performance of risky assets and the broader macro outlook over the next 12 months. the primary reason is the interest rate shock (over the past 18 months) will negatively impact economic activity. geopolitical developments are an additional challenge as they impact commodity prices, inflation, global trade in goods and services and financial flows. at the same time, valuations of risky assets are expensive on average,” kolanovic added., it is hard to see an acceleration of the economy or a lasting risk rally without a significant reduction in interest rates and reversal of quantitative tightening. this is a catch-22 situation, in which risk assets can’t have a sustainable rally at this level of monetary restriction, and there will likely be no decisive easing unless risky assets correct (or inflation declines due to, for example, weaker demand, thus hurting corporate profits). this would imply that some market declines and volatility would need to take place first during 2024 before easing of monetary conditions and a more sustainable rally., avoiding recession has now become consensus thinking but looking at the relatively small number of recessions throughout history as a reference point, yield curve inversion signals indicate recession risk is highest between 14 and 24 months after the onset of inversion. , “that time period will cover most of 2024 and should make it another challenging year for market participants,” kolanovic said., equity market  outlook , in 2022, the s&p 500 slid close to 20% in the wake of the fed’s decision to rapidly hike interest rates. however, equity markets advanced in 2023, recovering some lost ground. , while stocks have remained positive year to date, the outlook for earnings growth has not been as strong as investors hoped. equity concentration in the s&p 500 is now at levels not seen since the 1970s, meaning the rise in stocks this year has been driven by a cluster of tech mega-cap stocks. this dynamic, which has been seen ahead of previous economic slowdowns — along with an end to a period of record pricing power as 40-year high inflation begins to soften — suggests corporate margins are set to face major headwinds in 2024. .

S&P 500 outlook 2024

In 2024, J.P. Morgan Research estimates 2–3% earnings growth for the S&P 500 and a price target of 4,200.

“Absent rapid Fed easing, we expect a more challenging macro backdrop for stocks next year, with softening consumer trends at a time when investor positioning and sentiment have mostly reversed. Equities are now richly valued with volatility near the historical low, while geopolitical and political risks remain elevated. We expect lackluster global earnings growth with downside for equities from current levels,” said Dubravko Lakos-Bujas, Global Head of U.S. Equity and Quantitative Strategy at J.P. Morgan.

For the S&P 500, J.P. Morgan Research estimates earnings growth of 2–3% next year with earnings per share (EPS) of $225 and a price target of 4,200, with a downside bias. 

J.P. Morgan economists expect U.S. and global growth to slow by the end of 2024. At the same time, liquidity continues to contract as major central banks shrink balance sheets at an unprecedented pace and borrowing rates remain restrictive across consumer and corporate segments.

Among U.S. households, excess liquidity and cash-like assets have fallen from a peak of $3.4 trillion (T) to $1T and should largely be exhausted by the second quarter of 2024, based on J.P. Morgan Research estimates. 

“While it is difficult to pin down the start date and depth of a recession ahead of time, we think it is a live risk for next year, even though investors are not pricing in this uncertainty consistently across geographies, styles and sectors yet.”

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Dubravko Lakos-Bujas

Chief Global Equity Strategist, J.P. Morgan

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Geopolitical risks also remain high, with two major conflicts currently ongoing and national elections soon taking place in 40 countries, including the U.S. As such, equity volatility is expected to generally trade higher in 2024 than in 2023, and the extent of the increase depends on the timing and severity of an eventual recession.

“While it is difficult to pin down the start date and depth of a recession ahead of time, we think it is a live risk for next year, even though investors are not pricing in this uncertainty consistently across geographies, styles and sectors yet,” Lakos-Bujas added.

From a regional perspective, the U.S. continues to command a quality premium over other markets, given its sector composition and cash-rich mega-cap stocks. 

Outside the U.S. and within international developed markets (DM), the outlook for U.K. equities is optimistic, given significant valuation support and favorable sector compositions. 

“Despite cheap valuation, we expect European equities to have a V-shaped path, ending the year relatively flat. On the other hand, Japan remains attractive with a potential pick-up in retail participation, strong balance sheets, improving shareholder focus, better consumer real income growth and a still supportive policy backdrop,” said Mislav Matejka, Head of Global Equity Strategy at J.P. Morgan. 

A bumpy start to the year is expected for emerging markets (EM) given high rates, geopolitical developments and lasting U.S. dollar strength. However, EM should become more attractive through 2024 on EM-DM growth divergence, demand for diversification away from the U.S. and low investor positioning.

For China, which has lagged meaningfully this year, there is the prospect of better performance if the growth momentum delivers on the upside and geopolitical risks stay contained. 

“2024 can likely provide a tactical entry point for strategic allocations, with bond yields peaking ahead of rate cutting, and stocks likely to correct due to the disconnect between a slowing economy and unrealistic consensus earnings expectations.”

Thomas Salopek

Global Head of Cross-Asset Strategy, J.P. Morgan

Global economic forecast

Global growth exceeded expectations in 2023. despite synchronized monetary tightening from central banks around the world, the private sector proved to be resilient and positive fiscal and commodity price shocks also provided relief. , j.p. morgan economists expect the global economy to avoid a near-term recession, but an end to the global expansion by mid-2025 remains the most likely scenario., in this scenario, inflation remains sufficiently sticky at around 3%, meaning central banks will maintain higher-for-longer policy stances. this will ultimately lead to an earlier end to the expansion than currently anticipated by many. , but at the same time, with a healthy private sector that has weathered the monetary tightening cycle surprisingly well and some disinflationary signs emerging, soft-landing optimism is on the rise..

“Our top-down views have become more open to a soft-landing scenario (to 40%) but remain biased toward an end to the global expansion by mid-2025.”

Bruce Kasman

Chief Global Economist, J.P. Morgan

On balance, the global outlook calls for the following:

  • Growth is poised to slow as positive shocks fade, while rising yields and tighter credit bite.
  • Inflation moderation is expected to be limited by lingering damage to supply and a shift in inflation psychology.
  • Pressure will likely be concentrated in the business sector where margins should compress, prompting a slowdown in hiring and spending.
  • Vulnerability is likely to build gradually: We see a 25% chance of recession by the first half of 2024, 45% by the second half of 2024 and 60% by the first half of 2025. 
  • Inflation will not fall to target on a sustained expansion path, but recent developments soften our skepticism. 
  • U.S. supply-side performance has been impressive this year, easing labor markets despite strong growth.
  • Domestic demand shortfalls in China and Europe point to a potential ongoing disinflationary impulse. 
  • A soft landing is dependent on an inflation decline that allows monetary easing to begin by about mid-year. 
  • A mild recession is not a mild event and would generate a much worse outcome than a sluggish-growth soft landing. 

Since mid-2022, J.P. Morgan Research’s global outlook has moved away from focusing on a single narrative and has instead rested on recognizing a range of outcomes that each have a material likelihood. 

“It is no surprise that a tide of soft-landing optimism is now on the rise, boosting asset prices and expectations for early policy ease. Our top-down views have become more open to a soft-landing scenario (to 40%) but remain biased toward an end to the global expansion by mid-2025,” said Bruce Kasman, Chief Global Economist at J.P. Morgan.

“We continue to put the most weight on a ‘boiling the frog’ scenario, whereby elevated interest rates eventually drive the global economy into recession. We put a 60% chance on this occurrence,” Kasman added.

Global real GDP

In both 1H and 2H 2024, real GDP growth is expected to be higher in EM than in DM.  

Rates forecast

The reversal of the fastest and most synchronized dm central bank tightening cycle of 2022–23 will start in the second half of 2024, against a backdrop of muted growth and falling inflation. , on the monetary policy side, the global tightening cycle across dm central banks will be most likely completed by the end of 2023. central banks will be patient in holding policy rates if confidence around the convergence of inflation to target holds, but some will be under pressure to make additional hikes if the decline is too slow..

“We look for lower yields and steeper curves in 2024, with the largest moves expected to occur from spring onward. We forecast 10-year yields at 4.25% by mid-year and 3.75% by the end of 2024.” 

Co-Head of U.S. Rates Strategy, J.P. Morgan

Inflation in 2024 is expected to continue its downtrend trend on fading energy pressure and weaker labor markets, as the delivered tightening starts weighing on the growth outlook.

Headline inflation for DM countries

By the end of 4Q24, inflation in developed markets is expected to be close to the target set by central banks.

Potential stickiness on the way down will put pressure on central banks to stay higher-for-longer and push back on premature expectations of cuts. On the other hand, downward pressure on inflation will give confidence to DM central banks that the delivered tightening has been effective in taking inflation back toward target. 

“We expect a steady and gradual easing cycle toward a neutral level of rates across DMs if our macro baseline of soft landing unfolds, with differentiation across jurisdictions in terms of start date, pace and terminal. However, risks are tilted toward faster cuts in a recession scenario where the macro outlook warrants easy monetary policy,” said Fabio Bassi, Head of European Rates Strategy at J.P. Morgan. 

In the U.S., the Federal Open Market Committee (FOMC) will likely start cutting rates in the third quarter of 2024 at a pace of 25 bp per meeting, while quantitative tightening (QT) will continue through 2024. 

“We look for lower yields and steeper curves in 2024, with the largest moves expected to occur from spring onward. We forecast 10-year yields at 4.25% by mid-year and 3.75% by the end of 2024,” said Jay Barry, Co-Head of U.S. Rates Strategy at J.P. Morgan. 

Commodity markets outlook

After falling in 2023, j.p. morgan research expects brent oil prices to remain largely flat in 2024 and edge down a further 10% in 2025. , “our brent forecast has not changed since june and is expected to average $83 per barrel (bbl) in 2024,” said natasha kaneva, head of global commodities strategy at j.p. morgan. , this will be buttressed by solid supply-demand fundamentals. “despite sustained economic headwinds, we see oil demand rising by 1.6 million barrels per day (mbd) in 2024, underpinned by robust emerging markets, a resilient u.s. and a weak but stable europe,” kaneva said. .

“Despite sustained economic headwinds, we see oil demand rising by 1.6 million barrels per day (mbd) in 2024, underpinned by robust emerging markets, a resilient U.S. and a weak but stable Europe.”

Natasha Kaneva

Head of Global Commodities Strategy, J.P. Morgan

To keep the oil market balanced however, the OPEC+ (Organization of the Petroleum Exporting Countries) alliance will likely need to continue to constrain production. J.P. Morgan Research expects Saudi Arabia and Russia to extend their voluntary production/export cuts through the first quarter of 2024. Assuming Saudi Arabia pumps additional oil and Russia increases exports, global oil inventories will likely stay flat in 2024.

Over in U.S. gas markets, an overhang of supply will likely limit upside risks for U.S. gas prices in 2024. “We believe there are two stories that will dictate the year. The first narrative is one of oversupply and depressed pricing that is likely to linger through the first half of 2024 and, potentially, the entirety of the summer injection season,” said Shikha Chaturvedi, Head of Global Natural Gas and Natural Gas Liquids Strategy at J.P. Morgan. “The second is the ability for feed gas demand to not only offset but also outpace regional supply growth.” 

Global commodity price forecasts

In 2024, Brent crude is expected to average $83/bbl, natural gas $3.34/MMBtu, gold $2,175/oz, silver $30/oz and wheat $6.33/bu. 

Turning to metals, gold and silver are forecasted to outshine the rest of the sector. The Fed cutting cycle and falling U.S. real yields are expected to push gold prices to new nominal highs in the middle of 2024, reaching an average of $2,175/oz by the fourth quarter. In the same vein, silver prices will likely follow gold, averaging around $30/oz in the fourth quarter. 

“Across all metals, we have the highest conviction on a bullish medium-term forecast for both gold and silver over the course of 2024 and into the first half of 2025, though timing an entry will continue to be critical,” said Gregory Shearer, Head of Base and Precious Metals Strategy at J.P. Morgan. 

In the agriculture markets, price risk is skewed to the upside off current spot levels, particularly through the first half of 2024. “Our price forecasts call for a bullish outlook across sugar and modest gains across grain, oilseeds and the cotton markets through 2024,” said Tracey Allen, Agricultural Commodities Strategist at J.P. Morgan. Sugar prices are projected to average $0.30/lb in 2024, while wheat prices are expected to average $6.33 per bushel. 

Against an uncertain macro backdrop, how will FX perform in 2024? 

“foreign exchange (fx) market participants’ view on the macro outlook remains wide, spanning from a soft landing and additional fed hikes to recession. needless to say, they will need to navigate the transition among these scenarios tactically as these would imply different outcomes for the u.s. dollar,” said meera chandan, co-head of global fx strategy at j.p. morgan. , while the road ahead for the u.s. dollar (usd) looks bumpy, the greenback is expected to remain at elevated levels, with potential for new highs. “if rate cuts are realized, the dollar would still yield more than 56% of global currencies on a real basis in 2024,” chandan said. .

Forecasts for major currency pairs

By December 2024, EUR/USD is expected to reach 1.13, GBP/USD 1.26, USD/JPY 146, AUD/USD 0.68, CAD/USD 1.33 and NZD/USD 0.60. 

Looking at the euro, prospects for a convincing rebound in 2024 appear dim as the region is flirting with recession amid restrictive rates. A recovery in the single currency would require not only Fed easing, but also improved prospects of regional growth.

“Euro underperformance versus the dollar may be a longer-term phenomenon,” Chandan said, with J.P. Morgan Research forecasting the euro/dollar pair to hover between parity and 1.05 for the first half of 2024. 

The outlook is similar for the British pound, with the market oscillating between sticky inflation and weaker growth in 2024. The decisive issue for sterling in 2024 is largely about how far this year’s policy tightening can slow growth and the labor market, such that the Bank of England (BoE) is comfortable enough with the inflation outlook to cut the bank rate. 

“We take a bearish stance on sterling going into 2024, but are mindful that the economy is more resilient to policy tightening than we thought,” Chandan added. J.P. Morgan Research forecasts the sterling/dollar pair to sink to 1.18 in the first quarter of 2024, before rising to 1.26 by December. 

In Asia, structural pressures will continue to weigh on the Japanese yen in 2024. “We forecast yen appreciation in the second half of 2024 driven by shorter-term factors, namely relative policy rate changes. However, this appreciation may be shallow because of the underlying long-run downtrend,” said Katsuhiro Oshima, Head of Japan FX Research at J.P. Morgan.

Emerging markets outlook

“A key focus for us through 2024 is the U.S. economy and how it resolves cyclical uncertainty.”

Luis Oganes

Head of Global Macro Research, J.P. Morgan

Overall, the EM outlook will largely be dominated by U.S. growth and monetary policy cycles. These are the three key themes that will be at play in EM during 2024: 

The US cycle will be a major EM driver

The focus will be on the U.S. cycle as a soft-landing scenario or recession emerges. “For EM assets, there is likely hundreds of basis points’ difference between the two scenarios in terms of risk premia,” said Luis Oganes, Head of Global Macro Research at J.P. Morgan. “A key focus for us through 2024 is the U.S. economy and how it resolves cyclical uncertainty.” Near term, there is space for smaller cycles to be the primary drivers. “In the meantime, EM monetary policy and default cycles should be the focus of investment opportunities until the big cycle dominates again,” Oganes said. 

EM growth is set to moderate

EM growth is expected to moderate from 4.1% to a slightly below-trend 3.8% in 2024. China’s growth will edge lower to 4.9%, though a slew of targeted policy supports will put growth above 5% (ar) in the first half of the year. Regionally, Asia EM growth will accelerate, outweighing steady growth in EMEA and further slowing in Latin America.

Inflation will return to central bank comfort zones for most

J.P. Morgan Research forecasts headline and core inflation in EM ex-China and Türkiye to fall around 100 bp, converging near 3.5% yoy by the end of 2024. Monetary policy will stay restrictive as rate cuts will likely remain measured. 

“As you navigate increasingly complex markets, J.P. Morgan Global Research is looking forward to continuing our partnership, providing investment insights and ideas in 2024 and beyond.” 

Hussein Malik

Global Co-Head of Research, J.P. Morgan

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This communication is provided for information purposes only. Please read J.P. Morgan research reports related to its contents for more information, including important disclosures. JPMorgan Chase & Co. or its affiliates and/or subsidiaries (collectively, J.P. Morgan) normally make a market and trade as principal in securities, other financial products and other asset classes that may be discussed in this communication.

This communication has been prepared based upon information, including market prices, data and other information, from sources believed to be reliable, but J.P. Morgan does not warrant its completeness or accuracy except with respect to any disclosures relative to J.P. Morgan and/or its affiliates and an analyst's involvement with any company (or security, other financial product or other asset class) that may be the subject of this communication. Any opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Past performance is not indicative of future results. This communication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. J.P. Morgan Research does not provide individually tailored investment advice. Any opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies to particular clients. You must make your own independent decisions regarding any securities, financial instruments or strategies mentioned or related to the information herein. Periodic updates may be provided on companies, issuers or industries based on specific developments or announcements, market conditions or any other publicly available information. However, J.P. Morgan may be restricted from updating information contained in this communication for regulatory or other reasons. Clients should contact analysts and execute transactions through a J.P. Morgan subsidiary or affiliate in their home jurisdiction unless governing law permits otherwise.

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Trending Topics

Impact of missing the best 10 days in the market

Losses hurt more than gains feel good. During periods of market declines, a natural emotional reaction is to sell out of the market and seek safety in cash. However, keep in mind, the best days in the market are likely to occur close to the worst days. Staying the course with a diversified long-term investment strategy may produce a better retirement outcome.

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Market Commentary

Where are mortgage rates headed.

While we don’t expect home prices to decline materially from here given structural dynamics, Americans that have been sidelined from being able to purchase a home over the past couple of years are perhaps hoping and waiting for at least one area of reprieve: lower mortgage rates.

Can investment management harness the power of AI?

If 2023 was the year for AI excitement, this year may be the year for deployment. In first quarter earnings calls, approximately 45% of S&P 500 companies mentioned AI, marking a fresh high by our measures, and their collective investments continue to climb.

What’s going on with auto insurance costs?

Within that “super core” index, one small category (only 3% of the overall CPI basket) has been making outsized contributions: auto insurance.

Is investing in Asia about more than just China?

2023 marked a third consecutive year of double-digit declines for Chinese equity markets. Investors are now reconsidering how to invest in that market and whether investing in Asia is about more than just China.

Is the growth in private credit cannibalizing the high yield market?

To understand these shifting dynamics and determine how to embrace this growing asset class, investors should consider: What’s driving the growth of private credit and the decline in high yield and, if private credit deserves a strategic allocation in a broader credit portfolio?

Why is home ownership unattainable for so many young Americans?

Following the pandemic, median home prices surged by double digits until peaking at the end of 2022. While prices are down roughly 12% since then, home affordability still sits at multi-decade lows.

1Q24 Earnings: Off to a solid start

During the first quarter, U.S. equities shrugged off ever-changing expectations for monetary policy with relative ease, climbing 10.6% despite a sharp hawkish repricing in policy expectations.

Will the Federal Reserve (Fed) cut rates this year?

At its May meeting, the Federal Open Market Committee (FOMC) voted to leave the Federal funds rate unchanged at a target range of 5.25%-5.50%.

Is inflation reaccelerating?

Sticky price pressures pose a challenge for the data-dependent Fed, casting doubt on the possibility of any rate cuts this year.

Which overseas markets are particularly attractive?

Investors should consider trimming decade-long international equity underweights – and Asia is the key place to look for opportunities.

Will exit activity improve in private equity?

Private equity has been surprisingly resilient throughout the Fed hiking cycle. In 2022, PE only declined by 2%, but is now 3.2% higher than the end of 2021, compared to U.S. small cap stocks, which were 7% lower.

Will the U.S. consumer keep economic growth afloat?

It’s well understood that consumption is the largest contributor to economic growth in the United States accounting for just under 70% of GDP. Therefore, to a large extent, any outlook on the economy hinges on the health of the consumer.

Does conflict escalation in the Middle East change the investment outlook?

Investors should recognize that while geopolitical headlines have the ability to capture market attention, the shocks to sentiment are often short-lived.

Does AI have the power to enhance our health?

Well-positioned investors could take advantage of the new era unfolding in healthcare transformation.

Should investors be constructive given yields or cautious given spreads in corporate bonds?

We expect yields to stabilize in the near term and for spreads to remain tight given still healthy credit fundamentals and strong economic activity.

The quarter in review: what happened in the first three months of 2024?

2023’s so-called “everything rally” was confusing to many market watchers, given the pessimistic macro outlook at the beginning of last year. Now, a quarter into 2024, the rally has clearly continued.

Can multiples still support the equity rally?

The S&P 500 notched 24 new all-time highs in Q1, up 10.6%, with 2.7%-points from earnings, 7.4% from multiple expansion, and 0.4% from dividends.

Has the housing market turned a corner?

While we don’t expect a recession this year, whenever one occurs, the lack of private sector imbalances suggest that it is unlikely to be a severe one.

Would Fed rate cuts benefit EM equities?

Investors should focus on EM regions and sectors that benefit from structural, as well cyclical, tailwinds.

When will the Federal Reserve start cutting interest rates?

As widely anticipated, the Federal Open Market Committee (FOMC) voted to leave the Federal funds rate unchanged at a target range of 5.25%-5.50% at its March meeting.

Does it make sense to buy bitcoin?

Cryptocurrency investments should be made cautiously, and only as part of a much larger diversified portfolio of stocks and bonds. For investors with a long time horizon, traditional asset allocation remains an effective strategy.

Could AI adoption be the catalyst for Asia tech?

For investors looking to diversify concentration to U.S. tech names or to lean into underappreciated AI opportunities, Asian high-quality technology stocks could provide an attractive opportunity set.

Will Japanese Yen strength derail the Japanese equity rally?

Despite causing some short-term profit taking, gradual Yen strength can be digested by equities. Japan finally deserves to retake its place as a strategic allocation in global equity portfolios.

What’s behind the surge in working women?

The financial future for women looks promising, but for individual investors, a strong financial plan will be key in seizing the opportunity.

Is commercial real estate finding a floor?

After a significant pricing reset, private real estate could be on the verge of a rebound due to a few key drivers.

What has the Fed done in election years?

With monetary policy still at the forefront of the macro landscape in 2024, investors are left wondering how the election might influence Fed policymakers.

Can harvesting tax losses improve investor outcomes?

Investors should recognize that the challenging backdrop presents an opportunity for alpha generation, both through traditional security selection and through active tax management

Are there opportunities outside the “Magnificent 7” and outside the U.S.?

For over a year, investors have been hyper-focused on the performance of just seven U.S. companies, nicknamed the “Magnificent 7”*, and rightfully so, given their outsized returns, earnings growth, and long-term tailwinds.

How can investors avoid falling into the “Cash Trap”?

Over the last 30 years, cash has been unable to keep up with the creep of inflation. By contrast, other investments have been much better places to park capital.

What does the election mean for taxes?

Presidential candidates will be campaigning on various policy proposals throughout the year, but one policy item that must be addressed during the next administration is whether to sunset or extend tax cuts from the 2017 Tax Cuts and Jobs Act.

Market cap or equal weight?

The S&P 500 has reached a new milestone: crossing 5000. It is up 5.4% year-to-date, compared to the equal weight S&P 500, up just 0.7%.

Should investors be bullish or bearish on US equities?

While recession risks in the US have receded, geopolitical risk, election risk and restrictive monetary policy all threaten the current rally.

Are Chinese equities cheap enough?

As the Year of the Dragon is about to begin in China, investors wonder: Are Chinese equity valuations cheap enough to bring good fortune ahead? What will turn investor sentiment around? Equity valuations already reflect a lot of uncertainty about the short-term and long-term path, suggesting a tactical rebound may be in the cards.

How soon will the Federal Reserve (Fed) start cutting rates?

At the first Federal Open Market Committee (FOMC) meeting of the year, the FOMC voted to leave the Federal funds rate unchanged at a target range of 5.25%-5.50%.

4Q23 Earnings: Rounding the corner

Markets achieved a trifecta of good news in 2023: an economy that not only avoided recession but reaccelerated, meaningful progress on disinflation, and the Fed pivot markets had been trying to manifest for over a year.

What’s happened so far in 2024?

Geopolitical uncertainty and an impending U.S. presidential election, coupled with the divergence in performance across assets in January, help to underline the importance of diversification in a fundamentally uncertain world.

Can the Magnificent 7 retain its magnificence?

Much has been said about the “Magnificent 7” stocks that dominated market returns last year, ending 2023 up 107% and accounting for around two-thirds of the S&P 500’s performance.

Large caps, mid-caps, or small caps?

After an impressive equity rally in 2023 and new all-time highs to start 2024, investors are evaluating their equity allocations, which includes where to position along the market cap spectrum.

What will drive international equity performance this year?

International equities are likely to benefit this year from positive structural changes, a weaker dollar, and exciting governance changes.

Investing in an election year

Presidential elections always add an extra element of uncertainty to investing, and after a halcyon 2023 in equity markets, could come as a shock to investors. On top of assessing the path of the Federal Reserve, the stability of profits and the consumer, and navigating economic resilience vs. recession, investors will have to grapple with the barrage of headlines about the 2024 election.

How might geopolitical risks impact markets in 2024?

A spike in oil prices could lead to higher prices at the pump, further disrupting the broad disinflationary trend.

Does the December CPI report signal an inflation resurgence?

The December CPI report showed an unexpected bounce in inflation with headline CPI rising 0.3% m/m (consensus 0.2%) and the year-over-year rate rising to 3.4% (consensus 3.2%).

How much does policy influence sector performance?

Although investors may be tempted to invest based on who they think will win the election and how certain policies may be implemented, macro forces often dwarf policy agendas when it comes to sector performance.

Are markets too optimistic about rate cuts in 2024?

For investors, should fundamentals remain solid we would expect the Fed to begin gradually reducing rates by the middle of this year and for long-term rates to stabilize at current levels, before grinding lower over the balance of the year.

How sectors perform under Republicans vs. Democrats

Many investors wonder if they can tweak their existing exposures to be either more defensive against volatility or more opportunistic if certain sectors face future policy tailwinds.

What themes will drive the market in 2024?

We cannot predict what theme will dominate the markets in 2024, but we can control how we react to positive and negative surprises by having a measured approach to portfolios.

Will surging deficits contribute to higher interest rates in 2024?

Deficits are financed through Treasury issuance, and it is likely this significant increase in Treasury bond supply relative to estimates contributed to the move higher in bond yields this year.

Is the Federal Reserve finished raising interest rates?

At its final meeting of 2023, the Federal Open Market Committee (FOMC) voted to leave the Federal funds rate unchanged at a target range of 5.25%-5.50% and strongly hinted it is finished hiking interest rates this cycle.

What is the outlook for 2024?

In many ways, 2023 can be used as evidence that asset allocators must learn to “expect the unexpected”: the U.S. economy avoided a recession, the Federal Reserve pushed interest rates higher, growth equity continued to outperform relative to value and the international recovery was largely lackluster.

How can alternative assets drive portfolio outcomes in 2024?

The macro landscape has shifted dramatically over the last three years, and in 2024 uncertainty lingers as to whether the economy will experience resilience or recession.

Is the recent enthusiasm about Japanese equities justified?

Japan has long been a disappointing market for global investors, with annualized 15-year returns of 6.4% (in U.S. dollars) versus 13.7% in the U.S. Slow growth, negative interest rates, lack of focus on shareholders, and better opportunities elsewhere in Asia kept investment dollars away from Japan.

When will higher rates start hurting companies?

For investors, large caps may be better insulated from higher rates than small caps, and falling net interest costs can assist decelerating input costs and wages in supporting stabilizing margins.

Have other equity market returns been as concentrated as those in the U.S.?

The big story for U.S. equity markets this year has been the remarkable performance of the largest seven technology stocks or the “magnificent 7.” These handful of stocks account for nearly 100% of S&P 500 YTD returns and are up over 72% this year.

Does technical analysis matter?

Many investors are comfortable with the concept of fundamental analysis but are less confident in the technical aspects of market forecasting. As a result, they may wonder: does technical analysis matter?

Have equity valuations adjusted to higher rates?

Active stock selection remains of the utmost importance, as investors should look toward attractively priced companies with strong balance sheets and resilient profits.

What are the implications of cooling inflation?

For markets, disinflation could pose an earnings headwind for certain industries like autos, hotels and airlines while the Fed’s “higher for longer” mantra could instill continued volatility in bond markets.

Where can investors find sources of diversification?

While many of the traditional sources of diversification have been challenged by market conditions, alternative investments can enhance diversification.

How to position fixed income under different economic and interest rate scenarios?

Coming into 2023, the rallying cry from the asset management community was “Bonds are Back! ”. There were several reasonable assumptions behind this call.

After two consecutive pauses, what is next for the Federal Reserve?

While a reacceleration in growth and/or inflation could prompt another rate hike either in December or early next year, short-term bumps in a downward trending economy likely keep the Fed on hold well into 2024.

Can China turn its economy around?

Historically, Chinese market recoveries can be fast and furious, highlighting the risk of being too underweight China when pessimism is already elevated.

3Q23 earnings: Here today, what about tomorrow?

At the start of the year, investors and economists were confident that 2023 would be a challenging year for the economy, markets and corporate profits. In the event, however, growth has been better than expected, equity markets are higher, and earnings have surprised to the upside.

What is the opportunity in the secondary market?

The secondary market can often relieve liquidity issues for investors in private equity by offering the opportunity to sell existing investments to another buyer.

What is your outlook for the energy sector?

At first glance, the jump in energy equities may seem like a temporary phenomenon, but a variety of economic factors could support the sector’s performance over the longer-term.

Should investors embrace active or passive in fixed income?

Given the shifting characteristics in the bond market and uncertainty around the path of rates from here, investors should engage in an active approach with proven managers in their fixed income allocations.

Which measure of earnings should I look at?

The question for investors, however, is which measure of earnings has the highest correlation with stock market returns.

Does incoming data signal another rate increase by year end?

With two FOMC meetings before year end, investors and policymakers are closely monitoring the totality of incoming data to determine whether the committee will lift rates again or go on an extended pause.

What is the outlook for 3Q23 earnings season?

Despite many looming threats to the economy, 3Q23 earnings season should hopefully represent a relative bright spot in the landscape.

Is good news bad news?

As rates have moved higher risk assets have found themselves under pressure, with the S&P 500 down more than 7% from its July 31st high of 4,589. To an extent, this price action has been driven by a shift in investor psychology whereby “good news” is now “bad news.”

Will the U.S. economy avoid a recession next year?

It is still a close call on whether the economy will enter a recession or not, but we do believe slow growth is the most likely outcome, while risks for a mild recession remain.

How will the auto worker strike impact the U.S. economy?

If automobile production decreases, prices for vehicles, particularly used ones, may increase once more, unwinding some of recent disinflation and putting renewed upward pressure on “super-core” CPI.

What happens if the U.S. government shuts down?

After well over a year of anxiously anticipating an economic recession, the U.S. economy continues to look sound. However, as we enter the “fall of worry” there are several risks on the horizon this autumn: impacts from the UAW strike, rising oil prices, the resumption of student loan payments, and the potential for a government shutdown.

What are the investment implications of the September FOMC meeting?

As widely anticipated, the Federal Open Market Committee (FOMC) voted to leave the Federal funds rate unchanged at a target range of 5.25%-5.50% at its September meeting.

The transformative power of generative AI

Last quarter, 40% of S&P 500 companies mentioned artificial intelligence (AI) in their earnings calls – more than double from a year earlier – and their collective investments in AI are exploding.

What do financial conditions tell us about future growth?

With the possibility of tighter financial conditions going forward, investors may be well served by looking for any signs that tighter conditions are beginning to weigh on activity.

What is the outlook for the relationship between stocks and bonds?

Over the long run, duration will be an investor’s friend for both asset classes: not only will lower rates push bond prices higher, but a lower opportunity cost of owning equities and easy monetary policy should allow valuations and earnings expectations to move higher.

Have the rest of EM been faring as badly as China?

While what happens in China will continue to influence growth, sentiment, and performance in the broader EM universe, powerful structural and cyclical themes can lead to differentiated performance.

How might the outlook for real yields impact market performance?

We expect a slower growth and cooling inflation environment will allow the Fed to gradually reduce rates next year, thus stabilizing real yields and potentially biasing them lower.

What do I need to know after summer vacation?

With many parents (and investors!) taking the end of summer to be with their families and go to the beach one last time, kids are not the only ones who need a refresher before they head back to the classroom; in today’s blog, we try to help parents get ready to go “back to school.”

What is really going on with real assets?

2023 has seen more office conversion activity – while sometimes this can be easier said than done, it does suggest that there is an evolving opportunity in the office space for investors who can deploy additional capital.

Is the excitement toward Indian equities justified?

India’s smaller share in global manufacturing exports and its lower dependence on the China reopening story helps to explain its strength versus other export-oriented Asian economies’ struggles.

What is ‘up’ with rates?

While the probability of a soft landing has risen given the generally strong incoming data, the concern is that most leading indicators continue to point to recession.

Will U.S. investment grade credit spreads remain tight amid economic uncertainty?

The rally in corporate credit may have caught some investors by surprise given the consensus that a recession would materialize this year, a historically bad environment for credit spreads.

Is it true that when the U.S. sneezes the rest of the world catches a cold?

Looking back at the past six U.S. stock market declines greater than 10%, international has not always sold off more. In some instances, it has performed in line or even better.

2Q23 earnings: Resilient

This combination of resilient growth, better than expected profits and enthusiasm around artificial intelligence has led to a strong rally in U.S. equities so far this year.

What is the outlook for oil prices?

The likely cause for declining oil prices is increased U.S. production, which is expected to reach an all-time high in 2023.

Will the Federal Reserve hike rates again?

While the Fed may need some more convincing over the next two meetings, it seems reasonable to expect this tightening cycle will end this year.

What is the outlook for private equity?

It would not be surprising to see a more notable re-rating in valuations later this year or in early 2024; this, in turn, will create opportunity for both primary and secondary market investors.

Have U.S. equities rallied too much?

Beneath the surface are two market dynamics: the megacap tech stocks, which account for the lion’s share of positive market performance year-to-date, and everything else.

What is the outlook for capital spending?

The combination of slower economic growth, higher interest rates and tightening credit conditions are likely to weigh on CapEx and could be the thing that tips the U.S. economy into a mild recession.

What trends are persisting across alternative investments?

Fundamentals differ significantly at the sector level. For example, office remains the weakest sector, as vacancy rates remain elevated, and firms struggle to fully exit remote working.

Was the June FOMC meeting a Fed pause or hawkish skip?

Today’s announcement made it clear that the committee still needs more compelling evidence that inflation is under control and could very well tighten at least once more this summer.

Is the Fed getting inflation wrong?

While labor market conditions may have had some effect on pushing up services prices, we think its impact is overstated. Over the last 4 months, more than half of the year-over-year gain in core services ex-shelter inflation has come from transportation services alone.

How can private infrastructure fit in my portfolio?

Core infrastructure continues to represent a way to generate income without taking on more equity risk, while proactively hedging portfolios from the chance that inflation is harder to tame than many currently expect.

Will the debt ceiling aftermath push up interest rates?

Although rates have risen across the curve in recent weeks due to debt ceiling uncertainty, more hawkish Fed expectations, and resilient economic data, the overall macro landscape is one of slowing growth and receding inflation.

Inflation: A Somewhat Sticky Situation

As we emerge from this pandemic with inflation now rising at its fastest pace since the 1980s, the biggest question for investors is whether some of this inflation will prove “sticky”.

Featured Portfolio Insights

Global asset allocation views 2q 2024.

We expect moderating growth, cooling inflation and policy rate cuts in 2024. We overweight equities and credit and are neutral on duration. In equities we favor U.S. cyclicals, Japan and emerging markets ex-China. In fixed income, we prefer shorter-dated U.S. high yield and securitized credit.

Global Fixed Income Views 2Q 2024

Recent years remind us that significant central bank tightening does not automatically lead to recession. Sub Trend Growth is still our base case at 70% probability; we’ve raised Above Trend Growth’s likelihood to 15% and lowered Recession to 10%. Crisis is unchanged at 5%.

Global Equity Views 2Q 2024

Our portfolio managers are a little more cautious on the outlook. Many prefer quality stocks and find less expensive names in the more cyclical, industrial areas of the market. Fundamentals of corporate profits still look good.

Factor Views 2Q 2024

Factors had a strong first quarter, particularly equity factors. Equity value rose in nearly every region and remains inexpensive. Prospects remain attractive for a range of factors, including equity value and quality in the U.S., and macro carry

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The New Technologies for Longer, Healthier Lives

Revolutionary ways to prevent and treat disease can add decades to people’s lives. Here’s what investors should know about the opportunities in the longevity theme.

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The Dollar Is Poised to Keep Its Crown

Why the dollar is likely to hold onto its status as the reserve currency of the world, despite some cyclical weaknesses.

Watch for a September Rate Cut

Summer data should begin to show that inflation is finally under control, prompting the Fed to make the first of three interest rate cuts this year.

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Scaling Up the Impact of Obesity Drugs

The global market for the blockbuster drugs could increase by more than 15-fold over the next five years as their benefits expand beyond weight loss, with expected implications for consumer goods and longevity.

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What Could Keep India's Bull Market Going?

As India votes, the election’s outcome and other key factors could help determine whether its stock market maintains its trajectory.

Where Will Older Adults Live?

Investors should watch how a growing 65-plus demographic in the U.S. is creating opportunities for providers of senior living and targeted healthcare solutions.

Next-Day Disruption

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27th May 2024

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A successful takeover of Anglo American under the arrangements BHP Group has offered could lead to outflows of $4.3-billion from South Africa, according to a JPMorgan Chase & Co. analysis.

Such an outflow, if a deal goes ahead, could weaken the rand, which has gained 4.4% against the dollar, the most of 16 major currencies tracked by Bloomberg, over the last five weeks.

The deal, proposed by BHP and rejected by Anglo, would involve Anglo distributing its holdings in its South African iron ore and platinum units to shareholders. That, according to JPMorgan’s South African mining analyst Catherine Cunningham , would lead to developed-market investor index funds selling the unbundled stocks, resulting in the outflow.

While Anglo has spurned BHP’s $49-billion bid, it has agreed to talk to the company, which must now make a firm offer by May 29. A successful deal could also affect the share prices of the units, Anglo American Platinum and Kumba Iron Ore, Cunningham said.

“There is now a materially higher probability that BHP will reach an agreed deal,” she wrote in the May 23 note to clients. “We see downside risk to the share prices of both Amplats and Kumba.”

Cunningham didn’t assess the potential impact on the rand.

According to her analysis, developed-market funds would sell $9.4-billion in stock and $5.1-billion would be bought by emerging-market investors, resulting in the net outflow. JPMorgan estimated the index fund holdings in Anglo American based on publicly available data.

“Locals will not sell anything, developed market index funds will sell every share they receive and DM active and others will sell 90% of what they receive,” Cunningham estimated. “EM active funds will buy 50% of what’s for sale.”

Amplats, which has a market value of R192-billion, is nearly 80% owned by Anglo American. Kumba, which has a capitalization of R170-billion, is almost 70% held by Anglo American.

Developed-market index funds would need to sell their shares as Johannesburg-listed stocks wouldn’t fit their investment mandate. Active investors are likely to want to limit their exposure to single-commodity and -country stocks. Kumba’s mines are all in South Africa while Anglo Platinum has one small operation in Zimbabwe, with the rest in South Africa.

Spinning off the companies would also add $14.2-billion to the market capitalization of the MSCI South Africa index, or about 6%, Cunningham wrote.

Edited by Bloomberg

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Here is What to Know Beyond Why JPMorgan Chase & Co. (JPM) is a Trending Stock

JPMorgan Chase & Co. ( JPM Quick Quote JPM - Free Report ) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this company have returned +3.7% over the past month versus the Zacks S&P 500 composite's +4.8% change. The Zacks Banks - Major Regional industry, to which JPMorgan Chase & Co. belongs, has gained 2% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings Estimates

Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

JPMorgan Chase & Co. is expected to post earnings of $4.14 per share for the current quarter, representing a year-over-year change of -5.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.

For the current fiscal year, the consensus earnings estimate of $16.32 points to a change of +0.6% from the prior year. Over the last 30 days, this estimate has changed +1.1%.

For the next fiscal year, the consensus earnings estimate of $16.34 indicates a change of +0.1% from what JPMorgan Chase & Co. is expected to report a year ago. Over the past month, the estimate has changed +1%.

Having a strong externally audited track record , our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates , JPMorgan Chase & Co. is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

12-month consensus EPS estimate for JPM _12MonthEPSChartUrl

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Only 1 in 4 Americans think you need a college degree to get a high-paying job: report

  • Most Americans don't think that going to college is worth it these days.
  • Only 1 in 4 adults think you need a degree to get a high-paying job, per the Pew Research Center.
  • The US think tank said it surveyed over 5,000 US adults from November to December 2023. 

Insider Today

A majority of Americans don't think earning a college degree is a pre-requisite for snagging a high-paying job, according to a Pew Research Center report released on Thursday.

"Only one-in-four US adults say it's extremely or very important to have a four-year college degree in order to get a well-paying job in today's economy," the center wrote in its report , citing a survey it conducted with 5,203 US adults from November to December 2023.

Nearly half of the survey's respondents said having a four-year college degree is less important in getting a high-paying job today than it was 20 years ago.

Related stories

The US think tank's findings come as an increasing number of American youths are beginning to lose interest in higher education.

Last year, BI and market research firm YouGov surveyed more than 1,800 Americans across five generations.

According to the results, 46% of Gen Z respondents said they didn't think college was worth the cost. Only 39% of those surveyed said they felt it was important for them to advance their education.

The lukewarm reception to higher education should not surprise many, considering how expensive college tuition has gotten .

The burgeoning debts racked up by college graduates have prompted government intervention. Since taking office, President Joe Biden has approved multiple rounds of debt relief to borrowers.

"After the 70-year period in which policymakers and social commentators and community leaders all saying from the hymnal that you've gotta go to college to make it in America, that headline, that kind of postulate, has been overthrown," Harvard Business School professor Joseph Fuller told BI's Ayelet Sheffey in December.

Watch: Nearly 50,000 tech workers have been laid off — but there's a hack to avoid layoffs

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Weathering Natural Disasters

Research and insights about how Hurricanes Harvey and Irma affected local economies

In the wake of two especially damaging natural disasters, Hurricanes Harvey and Irma, the JPMorgan Chase Institute (JPMCI) analyzed the impact of these events on consumer financial outcomes , small business resilience , and local consumer commerce in Miami and Houston to understand how they affected local economies in the weeks and months after landfall. Together, these reports shed light on the financial experiences and decisions of consumers and small businesses before, during, and after the storms. The findings provide insight into the financial resilience of these communities, and reveal important takeaways for individuals, businesses, and policymakers. By learning from past natural disasters, leaders can better prepare for and respond to future natural disasters.

The JPMorgan Chase Institute leverages the firm’s proprietary transaction data to develop economic insights for the public good. For this research, we assembled data assets that included nearly 1 million households, 40,000 small businesses, and 24 billion anonymized card transactions within the Houston and Miami metropolitan areas during the weeks and months before a major natural disaster, with the goal of providing a high-frequency lens into the financial impact of these hurricanes.

Key Findings:

  • Hurricanes Harvey and Irma represented a major financial disruption for families and businesses.
  • While consumers and small businesses in both Houston and Miami may have seen inflows and outflows return to normal and hence healthy balances, they continue to see significant welfare impacts. Consumers spent significantly less on both healthcare and debt payments. Both consumers and small businesses may be preparing for or continuing to pay for construction repairs.
  • Harvey’s impact on Houston was negative across all three of our data lenses, leading to a near-total halt in commerce across Houston’s geography, business size, income, and demographics. Irma’s impact differed from that of Harvey, with less pronounced declines in local commerce during the month of landfall.

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    A successful takeover of Anglo American under the arrangements BHP Group has offered could lead to outflows of $4.3-billion from South Africa, according to a JPMorgan Chase & Co. analysis. Such an ...

  17. Malignant melanoma in a 12‐year‐old boy 17 months after completing

    We report a case of a 12-year-old boy who developed malignant melanoma with systemic metastases 17 months after completing treatment for hepatoblastoma. The diagnosis was made unexpectedly based on a bone marrow examination. The patient did not respond to immune checkpoint inhibitor therapy and died 6 weeks after being diagnosed with melanoma.

  18. Here is What to Know Beyond Why JPMorgan Chase & Co. (JPM) is a

    For the next fiscal year, the consensus earnings estimate of $16.34 indicates a change of +0.1% from what JPMorgan Chase & Co. is expected to report a year ago. Over the past month, the estimate ...

  19. Only 1 in 4 Americans Think Going to College Is Worth It: Report

    Only 1 in 4 adults think you need a degree to get a high-paying job, per the Pew Research Center. The US think tank said it surveyed over 5,000 US adults from November to December 2023.

  20. Public skepticism persists about value of college degree

    A new report from the Pew Research Center shows that the wealth gap between people with and without college degrees remains wide. Earnings for people without a college degree have increased over the past decade. But because people with college degrees are also earning more, the historic wealth gap between the two groups hasn't narrowed.

  21. Research Spotlight

    The JPMorgan Chase Institute leverages the firm's proprietary transaction data to develop economic insights for the public good. For this research, we assembled data assets that included nearly 1 million households, 40,000 small businesses, and 24 billion anonymized card transactions within the Houston and Miami metropolitan areas during the ...

  22. New report reveals inequities, disparities facing Colorado's Asian

    A new statewide research project sheds light on the inequities and disparities affecting AAPI populations. ... login. 8 mins ago - News. New report reveals inequities, disparities facing Colorado's Asian American community ... while just 8% of Asians as a group report poor mental health compared to the state average of 12%, Korean Coloradans ...

  23. AI Is the Leading Driver of Storage and HCI Projects in 2024

    Organizations seeking digital transformation success are ensuring their operations run on modernized infrastructure. Recent research by TechTarget's Enterprise Strategy Group found that as AI initiatives pervade a variety of teams and departmental goals, IT leaders are swinging their focus from augmenting the compute layer to optimizing their storage.