10 Usually-Ignored Insights – The Large Image

Anytime somebody has been efficiently analyzing the markets for many years, I take note of their deep dives. Paul Zummo has been doing considerate, helpful market evaluation for JPM for 3 many years.

That is from his latest “Anniversary Insights.”

Listed below are 10 often-overlooked insights that will help you make higher funding choices:

1. Be a skeptic.
Method due diligence from the attitude of the place does the providing “break”?

2. Volatility isn’t your enemy. 
Allocators usually focus an excessive amount of on supervisor volatility; in a portfolio context, it’s hardly ever the problem.

3. Give attention to the tail.
Being “uncorrelated” is good; being uncorrelated within the tail is highly effective.

4. Have the braveness to make errors.
Mitigate pointless dangers however take calculated bets.

5. Simply say no.
You’re extra prone to remorse making a failed, poorly conceived funding than lacking a very good one.

6. Foundation kills.
Pay attention to misalignment between your longs and shorts, as two bets are riskier than one.

7. Don’t be afraid to run into fires. 
Among the biggest funding alternatives and supervisor entry are sourced throughout dislocation.

8. It’s solely an excellent funding for those who can maintain it.
Stress take a look at not solely the portfolio but additionally how the enterprise, financing and counterparty threat maintain up beneath materials market stress.

9. The other of an extended isn’t a brief.
Nice brief sellers are wired in a different way; don’t anticipate success on the lengthy aspect to essentially translate to a profitable brief guide.

10. Don’t make logical choices based mostly on flawed info. 
Take the time to make sure high quality inputs and admire the flood of biased info throughout market extremes.

Try “10 easy however highly effective elements of due diligence,” numbers 11-20 on this listing; and “10 reminders that will help you keep a step forward,” nos 21-30 additionally from the complete listing of 30…

Supply:
JPMAAM’s Pearl Anniversary Insights: 30 “pearls” of knowledge from our final 30 years
by Paul Zummo
JPM, April 2025