JPMorgan's Michele Says 'Planet Underallocated to Fixed Income'

Bloomberg

Watch JPMorgan's Michele Says 'Planet Underallocated to Fixed Income' - Bloomberg on Dailymotion

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00:00Are you in the re-acceleration cap for 26?

00:03Are you expecting things to pick up in the new year?

00:05Yeah, I think the fourth quarter of this year and the first quarter of next year

00:09will be, you know, call it 1 to 1.5% GDP.

00:14There will be some digestion of further tariffs and final tariff policy.

00:19But with central banks cutting rates

00:22and an additional trillion dollars in stimulus hitting,

00:25it's hard not to see a re-acceleration in growth.

00:30What does yield tell you right now,

00:32not only the conventional full-faith and credit,

00:35but the very short-term paper, the trust market?

00:38What are the indicators you see into this meeting?

00:41The planet is under-allocated to fixed income.

00:44I just got back from the Middle East.

00:46I heard it everywhere I visited.

00:48I hear it domestically.

00:49I've got one meeting after another.

00:51How else do you explain the 10-year trading through the Fed funds rate today?

00:56It can only happen if there are constant buyers.

01:00And the buyers are out there in full force.

01:02And how does it cross over to the dollar

01:03as an indicator of that need to buy more paper in America?

01:08Well, I think that's a different topic

01:11because there is a sense that perhaps

01:13if you're an overseas investor

01:15and you've accumulated U.S. assets,

01:18you may look a little toppy in dollar exposure.

01:21So why not hedge some of that back to your base currency?

01:25So why not hedge some of that hay?

01:28So why not hedge some of that?

01:28Well, I think that's a pretty huge amount of money there.

01:29So why not hedge some of that?

01:30Well, definitely HALF?

01:31Well, I think the right thing is,

01:31we're going to get a Tree on deck.

01:32Well, it's huge now.

01:32Well, I think that's a huge price.

01:33I don't think that's a huge price,

01:34the right thing is.

01:35I think it's huge.

01:36So I did some of that.

01:36And I think that's a huge amount of money.

01:38I get a huge amount of money.

01:38I'm very much, I think it's huge.

01:39I can see that people are just huge.

01:40And they're like,

01:41come on, and they're not at the cost like that.

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