The largest bank in the US believes that the S&P 500 will rise to new record heights despite uncertain market conditions.
In the middle of the bank of the bank, JPMorgan says that investors should brace themselves to volatility and turbulent trade conditions, since the company expects Trump’s rate to put pressure on economic growth and business profits.
But JPMorgan notes That Trump’s rate is not sufficient to reverse the long -term bull market on the stock market. According to the Banking Titan, the White House works behind the scenes to determine the scene for the continuation of the Uptrend of the S&P 500.
“But a bull market cannot stop that. The more investor-friendly proposals from the administration (including lower interest rates, lower energy prices and fewer regulations) can be well in the second half of 2025 …
Shocking markets can take a while, but Key Developed Market Equity Markets (United States, Europe, Japan) should make new highlights in the mid -next year. Finally, Equity -markets like to keep the proverbial ‘wall of worries’. ”
JPMorgan is also of the opinion that technical shares will play a major role in the climb of the stock market to new of all time. The bank believes that technical shares get a “second wind”, propelled by solid income, relatively discount ratings and the development of artificial intelligence.
“But technical shares can get a second wind: the income of the company is strong and the ratings are not excessive. What is more, we are great believers in the long -term potential of AI …
In the area of the rating, the MAG 7 shares do not see cheaply, with a 26x forward price win several (versus 20x for the broad market). But valuations
Compared to the rest of the market, are at their lowest levels of the past 10 years. Another positive signal is the decision of the Trump administration to release semiconductors and other electronic products from rates for the time being. The United States indeed have a huge comparative advantage in technological innovation. “
While JPMorgan is a long -term bullish on the stock market, CEO Jamie Dimon warns that investors show “extraordinary optimism” after the S&P 500, which in just a few weeks became Gerally with 22%. According to Dimon, investors do not seem to be aware of the adverse consequences of Trump’s rates, which he warns that inflation can recover, stagflation and fuel-growing anti-American sentiment abroad can activate.
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