jp morgan asset management is optimistic despite markets there are plentiful opportunities for investors in their assumptions jp morgan urges investors to look beyond public markets they see bonds as losers with alternative assets holding the best return potential john bilton managing director  head of global multiasset strategy jpmorgan chase is still with us i find this report fascinating because we are too concentrated on the short term you were able to look out 1015 years from now the concern has been what scars will the pandemic and economic implications have on society what is your assumption john as we have looked at it it is a crucial statement we make a year and a half ago we were going through the deepest recession in 300 years judged by uk history what that meant was we were deeply fearful there would be major economic scarring in terms of bankruptcies unemployment and we have gone through a shock as a society as we have looked at the machinery that supports the global economy it is an optimistic message there is relatively limited scarring because of huge policy responses we saw it is the policy response and the implications that are the legacy of the pandemic mercifully not bankruptcies and unemployment that we saw as a risk 18 months ago we are dealing with a world where we have fiscal and monetary policy that pulled in the same direction we have easy monetary policy more two sided inflation risk also a burgeoning investment cycle that can create a lot of positives but means we have to step carefully as we think about asset allocation dani in terms of asset allocation you write about bonds we have a dire outlook for government bonds as well is there a chance going into the next decade we will have a multidecade bull market for bonds john one thing we would expect is rates will go up but very slowly the reason is if you look in the shortterm they really do not want to derail this recovery as we look further outcome of a huge amount of demand for duration from central bank balance sheets means it will be difficult for rates to go sharply higher that is why our pushback on bond vigilantism what it does mean is when we have growth growing on that looks reasonably solid and two sided inflation risk you do not need bond yields to go sharply higher to have a miserable time if you are a bondholder earning a negative real return that is why we are avoiding bonds when we have a choice to do so dani you and the team right in the report it is time to look yon public markets i was in berlin and everyone was optimistic the problem everybody continues to speak about are the high valuations how do you escape this problem if you shift to private markets it is an issue public markets faces well john valuations are always brought back to a simple priceearnings relationship and that can be simplest coming out of this recession and into what we think is a period of strong growth we will see earnings improve valuations tend to drift down the p can come down or the e goes up we think the e goes up and eases valuations across equity markets you have huge cash flow generation and reasonable outlook in terms of equities we do not feel the valuations on the earnings line of only thing to look at in terms of private markets one thing we think is opening up is exposure to new technologies to new ideas especially the green agenda and investment in renewables that will be supported by private markets that is a hugely important thing investors need to look at an all asset allocations private and public alike