Watch the video version on YouTube. 

U.S. equities have been on a tear in recent years. After climbing 26% in 2023, the S&P 500 finished up 25% on a total return basis in 2024, marking the best two-year stretch for the index since the late 90s. That said, with a select few companies driving the bulk of this rally, markets have become unbalanced, and concentration risk remains a significant issue heading into 2025. In times like these, active management is as important as ever. Our thirteenth season of Insights Now, titled “The Analyst’s Edge: A day in the life of equity research analysts,” will be all about the research backing our portfolio managers’ investment decisions. We will sit down with best-in-class buy-side equity research analysts from across J.P. Morgan, exploring a range of sectors and diving deeper into the most exciting trends driving markets today. With a new administration taking the White House, 2025 is likely to be another exciting yet volatile year for equity investors, so stay tuned to learn more about the opportunities we are following most closely.

At the heart of the recent equity market rally sits the semiconductor industry. Home to companies like Nvidia, Broadcom and other key beneficiaries of the AI frenzy, semiconductor stocks gained over 75% in 2024, far outpacing the broader market. That said, semiconductor applications extend far beyond just artificial intelligence. Companies serving traditional end-markets, like automotive, consumers, aerospace or defense, have lagged behind. While artificial intelligence will remain a key source of demand for the industry, improving demand from these other end-users could drive the next leg of the rally.

To share the latest on the semiconductor industry, Gabriela Santos, the new co-host, will be joined by Eric Ghernati, a technology-focused equity research analyst here at J.P. Morgan Asset Management.

Resources:

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Watch the video version on YouTube. 

As the U.S. economy continues its robust growth into 2025, this episode of Alternate Realities delves into the complexities of investing amidst challenges like inflation, interest rate volatility and market concentration. Dr. David Kelly, Chief Global Strategist, is joined by Oksana Aronov, Head of Market Strategy and Alternative Fixed Income, and Hamilton Reiner, Portfolio Manager and Head of U.S. Equity Derivatives. They discuss the importance of diversification and strategic hedging in both fixed income and equity markets, emphasizing the need for absolute return strategies. The conversation also highlights the potential for unlocking value beyond the "magic seven" stocks, offering valuable insights into navigating today's evolving financial landscape.

Resources:

Watch the video version on YouTube. 

Despite last year's excellent returns in public markets, alternative assets are garnering increased attention due to their income diversification benefits, high equity valuations and the potential for above-trend inflation. As alternative investments become more accessible to the public, allocations to these assets are expected to rise in the coming years. This trend underscores the importance of general education and thought leadership in the field of alternative investments. This is precisely the mission of the Guide to Alternatives and the Alternative Realities podcast. On this episode, Dr. David Kelly is joined by Aaron Mulvihill, the newest Global Market Strategist at J.P. Morgan Asset Management, who will be focusing specifically on alternative assets.

Resources:

Watch the video version on YouTube. 

The end of the year is near, and that means everyone is comparing their Spotify Wrapped and Apple Music Replays, making the case for why their most-listened-to song is the best. We wanted to do something similar for Insights Now. That is why, for our final episode of season 12, we will reflect on some of the most important takeaways from the 23 episodes we recorded this year. From exploring the fastest-growing themes in alternatives to navigating the complexities of the U.S. election, we’ve covered a lot of ground, so stay tuned as we recap our “greatest hits” of 2024.

This episode explores the main themes and insights from the past year. Dr. David Kelly is joined by Gabriela Santos, the Chief Strategist for the Americas at J.P. Morgan Asset Management, and new co-host for the Insights Now podcast.

Resources:

Explore the full Investment Outlook here. 

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Watch the video version on YouTube. 

In this episode of Alternative Realities, we’re going to explore the transportation sector's resilience amid geopolitical and market disruptions. we'll talk about how transport assets, like ships and planes, have shown stability during events such as the pandemic and geopolitical tensions. The discussion highlights the sector's critical role in global trade, the impact of regulations like the Jones Act and the evolving landscape influenced by tariffs and China's economic activity.

Dr. David Kelly, Chief Global Strategist is joined by Anurag Agarwal, Head Portfolio Manager for our Global Transportation Group, to discuss the distinction between opportunistic and core investment strategies in the transport sector, emphasizing the stability and income potential of leasing critical transport assets.

Resources:

Watch the video version on YouTube. 

In recent years, the notion of “correct” portfolio construction has been challenged and diversification has become unpopular. Stocks and bonds have shown an increased propensity to move together, calling into question the efficacy of the classic “60/40” portfolio. Moreover, sustained outperformance in select segments of global financial markets has caused portfolios to drift away from target allocations and left many investors with little motivation to allocate elsewhere. However, with a new year comes new forces driving markets, and the winners of the past may not be the winners of the future. To prepare portfolios for any unforeseen risks that may arise in 2025, diversification remains the best option, although the ways in which investors can diversify may look different than before.

To share his thoughts on diversification in the year ahead, Dr. David Kelly is joined by Jack Manley, Global Market Strategist here at J.P. Morgan Asset Management.

Resources:

Explore the full Investment Outlook here. 

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Watch the video version on YouTube. 

The pandemic, geopolitical tension and climate change have revived industrial policy around the globe. In the U.S., the IIJA, IRA, and CHIPs act collectively represent the largest investment in infrastructure since the Cold War. In particular, there are significant opportunities in modernizing and expanding the electrical grid as decarbonization and data centers drive up demand. In addition to these secular tailwinds, core infrastructure’s steady, uncorrelated cash flows make it a valuable portfolio diversifier. Today, Dr. David Kelly is joined by Chris Simard, an Investment Specialist in the J.P. Morgan Infrastructure and Investment Group, to parse through all of this and more.

Resources:

Watch the video version on YouTube.

Despite uncertainty at the onset, 2024 is shaping up to be yet another impressive year for the economy and markets. A resilient consumer has put the U.S. on pace for another year of above-trend growth, and the S&P 500 has rallied over 25% so far, breaching $6,000 for the first time in history. That said, with a new year comes new opportunities as well as challenges. As the cyclical imbalances exacerbated by the pandemic and tight monetary policy continue to improve, economic conditions should normalize further in 2025, although a new element of policy uncertainty introduced by the incoming Trump administration and Republican-controlled Congress threaten to cloud the outlook. While new policies might hurt prospects in some asset classes, they should benefit others, and investors have plenty to be excited about heading into the new year.

To dive deeper into our 2025 outlook, Dr. David Kelly is joined by Gabriela Santos, Chief Strategist for the Americas here at J.P. Morgan Asset Management.

Resources:

Explore the full Investment Outlook here. 

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify

Watch the video version on YouTube.

In this episode of Alternative Realities, we’re going to be exploring the current landscape of commercial real estate, highlighting opportunities beyond the office sector. We’ll talk about the ongoing housing shortage in the U.S., which has been made worse by past overbuilding, lack of workers and zoning issues. The industrial sector is thriving, driven by the rise in e-commerce and logistics, with a significant increase in delivery vehicles. Retail is evolving, with neighborhood strip centers and high-end luxury performing well, while middle-tier malls struggle. Real estate is a valuable component of investment portfolios, offering risk mitigation, inflation protection and consistent cash flow.

Dr. David Kelly, Chief Global Strategist is joined by Chad Tredway, Head of Real Estate Americas at J.P. Morgan Asset Management, to discuss the opportunities he’s seeing on the market. Chad leads our investment management business in the United States for real estate and his team focuses on the $70 billion of real estate that we own.

Timestamps:

Resources:

For more resources on Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing

Listen to the audio version of the Alternative Realities podcast: Apple Podcasts | Spotify

Watch the video version on YouTube.

As we usher in a new year, the investment landscape is almost certainly set to change. That’s why in our twelfth season of Insights Now titled, “Preparing for the path forward,” Dr. David Kelly will sit down with portfolio managers and strategists from across J.P. Morgan to discuss their key takeaways from 2024, and what they expect from the economy and markets in 2025. With the new year just around the corner, tune in to hear what opportunities we are most excited about, and what risks we are most mindful of, heading into the new year. With the U.S. election in the rear-view mirror and the Federal Reserve finally easing policy, the forces driving financial markets in 2025 could differ greatly from 2024. Policy uncertainty should step in for election uncertainty, and the monetary policy debate will center around how quickly the Fed will cut, not when it will begin cutting. Still, with the U.S. economy displaying impressive resilience and structural tailwinds supporting prospects abroad, there remains a wide menu of attractive opportunities for investors to consider across global stocks and bonds, and plenty of ways to diversify. That said, markets can move quickly. Investors striving for alpha should be active in portfolios and allocate to their highest conviction ideas instead of sitting passively on the sidelines. To share some of his highest conviction ideas for the year ahead, Dr. David Kelly is joined by Phil Camporeale, Portfolio Manager in our Multi Asset Solutions group here at J.P. Morgan Asset Management.

Resources:

For more resources visit our website. 

Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify