JP Morgan Says Worst of the Global Financial Crisis May Be Over
HONG KONG: The worst of the global financial crisis may be over, according to JP Morgan.
And it said it is time to start looking for bargains in Chinese shares.
It has been a tumultuous year for stock markets worldwide, and JP Morgan admits that it has also been a humbling experience for strategists.
But it is keeping a positive stance and said the worst of the financial crisis has passed.
Adrian Mowat, Chief Asian & Emerging Market Strategist, JP Morgan, said: “The extreme event was the loss of confidence post-Lehman going into Chapter 11. And that is beginning to gradually improve.”
JP Morgan said it is time to start looking at markets with cheap valuations.
While it expects earnings results to remain weak over the next two quarters, it said investors should stay defensive with their investments and take a long-term approach.
And it believes there are bargains to be found, for example, in China.
Mr. Mowat said: “I think we have seen the low in the A-share market, which has been performing relatively well considering the downtrend in other markets. I also think we have seen the low in H-shares.”
JP Morgan is forecasting the Chinese economy to grow by more than 8 per cent next year.
JP Morgan said it is hard to predict exactly when Asia will see a significant recovery.
But it believes once China’s economy stabilises, the rest of the region will follow.
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JP Morgan Says Worst of the Global Financial Crisis May Be Over
HONG KONG: The worst of the global financial crisis may be over, according to JP Morgan.
And it said it is time to start looking for bargains in Chinese shares.
It has been a tumultuous year for stock markets worldwide, and JP Morgan admits that it has also been a humbling experience for strategists.
But it is keeping a positive stance and said the worst of the financial crisis has passed.
Adrian Mowat, Chief Asian & Emerging Market Strategist, JP Morgan, said: “The extreme event was the loss of confidence post-Lehman going into Chapter 11. And that is beginning to gradually improve.”
JP Morgan said it is time to start looking at markets with cheap valuations.
While it expects earnings results to remain weak over the next two quarters, it said investors should stay defensive with their investments and take a long-term approach.
And it believes there are bargains to be found, for example, in China.
Mr. Mowat said: “I think we have seen the low in the A-share market, which has been performing relatively well considering the downtrend in other markets. I also think we have seen the low in H-shares.”
JP Morgan is forecasting the Chinese economy to grow by more than 8 per cent next year.
JP Morgan said it is hard to predict exactly when Asia will see a significant recovery.
But it believes once China’s economy stabilises, the rest of the region will follow.
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