JPMorgan Asset’s Michele Says Global Bond Rally Is Just Starting
- He says inverted yield curve points to recession in 18 months
- Michele favors quality durations and avoids high-yield credit
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The bond rally that erupted after this week’s US inflation report was the moment Wall Street veteran Bob Michele has been waiting for.
The J.P. Morgan Asset Management chief investment officer for fixed income has been gearing up for a bond rally since late last year, buying high-quality government bonds, credit and emerging-market debt as they fell to multi-year lows. He has long believed the US economy will enter a recession as the Federal Reserve went too far in raising interest rates.