Key Moments
- JPMorgan Asset Management expects profit growth and attractive valuations to support equity opportunities outside the U.S.
- Portfolio managers highlight Taiwan, South Korea, China, and Hong Kong as key markets. SK Hynix (KS:000660) and Samsung Electronics (KS:005930) trade at relatively lower valuations.
- The firm remains positive on risk assets heading into 2026. It does not foresee a recession and anticipates continued strength in AI-related infrastructure and utilities.
Shifting Favor Toward Non-U.S. Markets
JPMorgan Asset Management signals that investors can find broader equity opportunities outside the United States. This is because profit growth is picking up across global markets. Additionally, valuations appear more compelling relative to U.S. levels.
Speaking with Bloomberg TV, global market strategist Kerry Craig said conditions now support regions that have lagged behind the strong U.S. equity rally. He added that earnings growth is coming through and valuations for other markets look more attractive.
Craig emphasized that the current environment is a good time for investors to expand their geographic reach.
Higher Valuation Regime and Global Earnings Momentum
JPMorgan Asset Management notes that elevated price-to-earnings ratios may persist as earnings strength broadens beyond the U.S. This trend is not confined to a narrow set of domestic leaders.
Hong Kong-based portfolio manager Jordan Stewart said, “We may be in a structurally different regime where PEs are slightly higher going forward.” He suggested that investors adjust to this higher baseline for equity valuations.
Rebalancing Away From U.S.-Heavy Portfolios
Craig observed that many investor portfolios remain heavily concentrated in U.S. assets. Therefore, he urged a reassessment of how to gain global exposure. In particular, he emphasized exploring a broader array of ways to participate in global themes.
He highlighted AI infrastructure build-outs in Taiwan and South Korea. Additionally, diversification opportunities exist in China and Hong Kong.
South Korea and AI Supply Chain in Focus
Craig pointed out that South Korea is well positioned to benefit from the AI investment cycle. The memory chip sector plays a key role. He noted that SK Hynix (KS:000660) and Samsung Electronics (KS:005930) still trade at relatively lower valuations compared to other markets.
| Market/Theme | JPMorgan AM View | Illustrative Names/Regions |
|---|---|---|
| U.S. equities | Strong rally; many portfolios heavily tilted toward U.S. | Focus shifting to opportunities abroad |
| AI infrastructure build-out | Key driver of demand across Asia | Taiwan, South Korea; memory chipmakers such as SK Hynix and Samsung Electronics |
| China and Hong Kong | Viewed as diversification avenues | Broader regional exposure |
| U.S. utilities | Outperformed in 2025; momentum expected to carry into 2026 | Utilities tied to AI-related power and infrastructure demand |
AI-Driven Demand Extends Beyond Technology Hardware
Stewart expects the AI theme to affect more than traditional technology hardware. For example, U.S. utilities are benefiting. This sector outperformed in 2025 and should sustain its strength into 2026.
He added, “There’s a lot of demand for infrastructure and energy support to power all this artificial intelligence. We think that will continue.”
Constructive Stance on Risk Assets Into 2026
Looking ahead, JPMorgan Asset Management maintains a positive outlook on risk assets for 2026. The firm does not expect a recession. Moreover, it sees opportunities across global equity markets. In particular, opportunities exist where earnings growth is improving and valuations remain attractive.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
