Tilmann Galler Benedicte Gravrand, Opalesque Geneva:
Tilmann Galler, a client portfolio manager and global market strategist at J.P. Morgan Asset Management in Frankfurt, is responsible for equity and multi asset portfolios. He share his perspectives with Sona Blessing in a recent Opalesque Radio interview on asset allocation, possible headwinds and optimising risk-reward premiums.
J.P. Morgan’s scenario for the reminder of the year is quite constructive, he says, as for the first time in many years, there is a synchronised recovery in the developed world, especially in Europe’s periphery and core.
There are still headwinds though, especially political ones in Eastern Europe, which could hurt the recovery. Also, China might experience a harder landing than expected. Although the latter is not very likely to happen this year, he adds, as the current dose-by-dose reduction of credit will be met with economic stimulation when economic growth decreases.
Positioning a portfolio to minimise potential losses and optimise positive performance, given the headwinds, should encompass diversification of holdings, he explains. "Even if you are positive on risky assets like we are, and we are still positive and bullish on equities and bonds, and we still prefer high yield inside the fixed income space… you need to be more diversified because valuations are not that attractive anymore. And you need to be pr......................
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