JPM’s Normand: Underweight U.S. Assets on a Cross-Market Basis

The video discusses the current market pricing in anticipation of a contested US election, noting that markets expect little change in economic behavior regardless of the election outcome. It highlights the presence of volatility but not a significant drop in asset prices. The video also explores hedging strategies for investors, suggesting underweighting US assets and considering currency dynamics. It emphasizes that credit markets are supported by limited issuance and potential Fed interventions.

How should investors adjust their asset allocations in light of a contested election?

What factors support the credit markets despite the uncertainty surrounding the election?