J.P. Morgan – 2025 Long-Term Capital Market Assumptions

The 2025 report from J.P. Morgan offers a long-term outlook for investment returns and risks across asset classes. This edition highlights a shift toward higher growth and capital investment, influenced by AI, automation, and fiscal policy changes. The annual return forecast for a 60/40 stock-bond portfolio is set at 6.4%, with opportunities for growth in alternative assets like real estate and private equity. Key findings include rising interest in AI-driven productivity enhancements, a 20-basis-point boost in annual growth projections for developed markets, and inflation rates slightly above pre-pandemic levels. The report suggests investors focus on active management and diversification to optimize portfolios amidst economic and geopolitical shifts