JPMorgan Says Less Than 1% Growth is ‘Good Enough for Credit’
- Bank expects ‘slow but positive’ US GDP growth of 0.7% in 2024
- Projects double-digit returns, tighter spreads for blue-chips
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JPMorgan Chase & Co. isn’t expecting much in the way of US economic growth next year, but it will likely be enough for US investment-grade spreads — already near four-month tights — to narrow further and for returns to hit a five-year high by the end of 2024.
The bank anticipates “slow but positive” US gross domestic product growth next year at 0.7%, according to a Tuesday report. It also expects the Fed funds rate to fall by 100 basis points in the second half of the year. Meanwhile, total returns for US blue-chip bonds are set to end 2024 at 12.4%, the bank said.