JPMorgan Optimistic on Tech-Cyclical Combination, Recommends Adding Healthcare Sector
JPMorgan's latest report indicates a favorable outlook for a "Tech + Cyclical" combination in stock allocation, recommending the inclusion of healthcare as a third investment theme to reduce the overall portfolio's correlation with macroeconomic factors. The report mentions that the tech sector presents opportunities for a rebound from oversold conditions, with the forward price-to-earnings ratio of the "Seven Giants" of the U.S. stock market (excluding semiconductor companies) falling below two standard deviations from the average since 2018, suggesting a potential upside of about 56% if it returns to historical averages. JPMorgan believes that market concerns over AI investment returns are overstated, as orders for large-scale cloud computing companies have increased by approximately 150%, outpacing the roughly 80% growth in capital expenditures, highlighting mean reversion opportunities for AI-related assets in the Asia-Pacific region. In terms of cyclical sectors, the report suggests shifting from financials and consumer stocks to industrial stocks, as industrial companies are expected to benefit from global economic improvement, profit recovery, and valuation reassessment driven by AI themes. Additionally, the report recommends allocating to the healthcare sector as a defensive asset due to its lower correlation with macro cycles, which helps reduce portfolio volatility. In emerging markets, JPMorgan is optimistic about Chinese Hong Kong stocks, believing they will benefit from AI infrastructure development and commercialization trends, although their gains have lagged behind those of South Korea, Taiwan, and A-shares. At the same time, it suggests taking some profits on AI supply chain targets that have seen excessive gains and crowded positions. The report also focuses on Asian refining companies, noting that geopolitical uncertainties have driven Asian refining margins to historical highs.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

Capital Reflow in AI Industry Accelerates Tech Stocks in US

Meta's Muse: A Slightly Smarter Version of 'AI Ordering Coffee'

Apple and Google Strengthen Talent in Payment and Web3 Strategies, Stablecoin Knowledge Required for Hiring

Anthropic Leases 1 Gigawatt of Computing Capacity to Reduce Dependence on Cloud Providers

Alibaba Accelerates Data Center Expansion in Europe and the Middle East, Establishing Cloud Regions in the Next 12 Months

Puffer Partners with Google Cloud to Support UniFi Infrastructure

BlackRock Releases White Paper Connecting Digital Assets and Intelligent Business

Mirendil Discusses New Investment with a Valuation of $5 Billion

Serenity: AI Causes Valuation Mismatch, Changing Value Investment Logic

Jamie Dimon forecasts AI spending by hyperscalers to reach $1 trillion by 2027

How Significant Are Changes in Overseas AI Investment?

Verda AI Cloud Financing: From $117 to $155 Million, Total Capital Over $200 Million

TraderTraitor Hackers Launch Phishing Attacks Using Malicious Terraform Projects

Apple and Google Hire for Stablecoin Positions to Evaluate New Payment Financial Services

FLock Open Source Decision Model this-that-model-1.0

WEEX Attains ISO/IEC 27001:2022 Certification, Reinforcing Its Commitment to World-Class Security
This certification highlights the rigorous information security management system WEEX has built to protect its 10 million users across every market it offers.

ZCode Officially Open-Sourced, Completes Security Rectification and Passes Audit

Chengming Technology Holds Zhipu Technology Accountable for Unauthorized Data Uploads

DeBot Confirms APT Attack, Fund Isolation Ongoing

AMD Stock Soars 5%: Reports Say It's Raising GPU and CPU Prices
AMD stock rose on unconfirmed reports of a 10% price hike on GPUs and chipsets tied to rising TSMC costs, Ryzen CPUs are notably absent from the list.

AMD Stock Price: Why Free Cash Flow Fell From $2.6B to $1.6B Even as Shares Rally
AMD's free cash flow fell 39% in Q2 as capex nearly tripled and supplier payments got delayed, even as revenue hit a record $11.5 billion.

ZCode Exposed for Uploading Project Snapshots and Git History in the Background

SoftTech establishes an education technology company with a registered capital of 15 million yuan, including blockchain business

Bitdeer Signs 10-Year 65.1 MW AI Computing Power Agreement, AI Project Reserves Exceed $7 Billion

Vitalik Buterin's Local AI Push: Can Your Laptop Replace ChatGPT?

Intel vs Nvidia After the Fed Hike: Why INTC Outperformed

Bitcoin miners have amassed $100 billion of AI deals, but almost none of the revenue exists yet

AI Generates $1.5 Million per MW, Three Times More than Bitcoin Mining

Anthropic's Computing Commitment Reaches $517 Billion










