JP MORGAN CHASE(US:JPM) Prnewswireยท2025-10-20 17:12Core Insights - J.P. Morgan Asset Management released its 2026 Long-Term Capital Market Assumptions (LTCMAs), marking the 30th anniversary of this flagship report, which provides a 10-15 year outlook on returns and risks across various asset classes [1][2][8] Market Outlook - The forecast annual return for a USD 60/40 stock-bond portfolio over the next 10-15 years is projected at 6.4%, with an increase to 6.9% for a 60/40+ portfolio that includes 30% in diversified alternatives [2][4] - Despite labor constraints impacting long-term growth, AI adoption is expected to enhance profits in the near term and productivity in the long term [2][4] Economic and Investment Trends - The report highlights the resilience of markets despite slower growth projections, with strong asset return forecasts [4][5] - Economic nationalism is identified as a challenge that may lead to increased domestic investment, presenting opportunities for investors [4] - The ongoing technology boom, particularly in AI, is seen as a critical driver of market momentum, necessitating active management to identify potential winners and losers [4][5] Asset Class Projections - U.S. large cap equities are expected to return 6.7%, while global equities are projected at 7% and emerging markets equities at 7.8% [13] - Private equity is forecasted to return 10.2%, and U.S. core real estate is expected to yield 8.2% [13] - Commodities are projected to return 4.6%, with gold expected to rise to 5.5% [13] Strategic Recommendations - Diversification is emphasized as essential for managing risk and achieving returns in a volatile inflation environment [5] - Investors are encouraged to adopt a goals-based investment strategy to maintain alignment and adaptability in uncertain conditions [3][5]