Cash Is Only Way to Limit Risk in Next Year, JPM’s Normand Says

The transcript discusses the economic impact of COVID-19 vaccines, predicting a stronger global economy with above-trend growth in 2021. It highlights the role of fiscal and monetary policies, suggesting that while fiscal policy may drag slightly, it won't hinder growth. The discussion covers cash deployment strategies, emphasizing the importance of maintaining some cash due to low bond yields. Alternatives to traditional hedges, such as defensive assets in currencies and commodities, are explored. Finally, it identifies credit and emerging markets as key areas for yield in 2021.

What is the expected impact of vaccines on the global economy according to the transcript?

• Increased volatility and economic downturn

• Stronger global economy with reduced volatility

• No significant impact on the economy

• Immediate economic recovery without any challenges

What is the anticipated economic trend for 2021 after the vaccine deployment?

• Stagnant growth

• Declining growth

• Below trend growth

• Above trend growth

How should investors approach cash holdings in their portfolios?

• Hold a large cash position

• Avoid cash completely

• Maintain a small residual cash position

• Invest all cash in government bonds

Which defensive assets are mentioned as alternatives to bonds?

• Yen, Swiss franc, and gold

• Oil and natural gas

• Cryptocurrencies and art

• Real estate and stocks

Where can investors find yield in 2021 according to the transcript?

• Developed market government bonds

• High yield credit and emerging markets

• Real estate and commodities

• Cryptocurrencies and tech stocks