JP Morgan Recommends "Sell Stocks and Invest in Corporate Bonds"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] JP Morgan has advised conservative investors to sell some blue-chip stocks and purchase bonds.

On the 3rd (local time), Bloomberg reported that JP Morgan stated in an investment memo that "it may be reasonable to sell stocks and invest in bonds."

The agency cited its own index data, reporting that the average yield on investment-grade corporate bonds was 4.4% based on the previous day's closing price, creating a gap of 2.9 percentage points compared to the S&P 500's average dividend yield of 1.5%. This is the largest yield gap since 2009, right after the global financial crisis.

JP Morgan strategists maintain a positive stance on stocks but explained that some investors are seeking investment strategies to offset their drawbacks. The U.S. Federal Reserve (Fed) began raising interest rates in March for the first time since 2018 to control inflation, and U.S. stocks have fallen 12.4% so far this year based on the previous day's closing price.

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