Investors Should Expect Rougher Times Ahead

In a recent Barron’s article in which he describes the current U.S. economic expansion as an “Indian summer”, JPMorgan chief strategist David Kelly says that investors should guard against being “overly enthusiastic about overvalued assets” at this late stage in the cycle. Despite human hardship, Kelly points out, the rebuilding necessitated by recent natural disasters will be a positive from an economic standpoint, and potential tax cuts could be a boost going forward. Earnings and GDP growth should continue in the short term, Kelly says, but both could slow by the second half of next year. He argues that, without […]

Bogle vs. Gross on Market’s Future

Investment legends Bill Gross and Jack Bogle offered differing opinions on what the future holds for the economy and the stock market in this recent CNBC interview. Gross reiterated his belief in a “new normal” in which both stock and bond investors need to rachet down their expectations. Bogle, meanwhile, says it’s reasonable to expect stocks to post annualized returns of a little more than 8% over the next decade. JPMorgan Funds Chief Investment Strategist David Kelly also offered his take on why ballooning government debt could lead to investors moving money out of bonds and into stocks.