J.P. Morgan Asset Management global market strategist Stephanie Aliaga said higher yields have made fixed income more attractive in portfolios. She noted clients are wary of the AI trade, though she sees its fundamentals, particularly AI-related revenue growth, as still robust, while the market is entering a more discerning phase where higher financing costs separate business models. She still views the outlook for risk assets as constructive but stressed the need for protection in portfolios, as past recessions were largely missed by forecasts. On the Fed's expected December hike and possibly another in Q1 or Q2 next year, she believes this is already priced in; if inflation cools and geopolitical tensions do not flare up, markets could see relief that might also help parts of the AI trade that had become overstretched.
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bondsinterest ratesFedinflationAI investment
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Related tickers and likely impact
DXY
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/27/2026 | 102.37 |
| Change that session | +0.35% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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