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

iPronics Secures $125 Million in Series B Funding with Participation from Nvidia

Tokenized Stocks: What Taxes and Taxation in France?

Delay in American Cryptocurrency Bill CLARITY Act Due to Cancellation of Work Weeks

One-Room Apartments in Ukraine: How Prices and Availability for Sale and Rent Changed in 2026

ZKsync Recommends Extending EraVM Execution Delay to 24 Hours

Ukrgasproduction Implements 'Turnkey' Well Construction Model

US to Release August Non-Farm Payroll Report Tonight, Expected to Add 56,000 Jobs

Ansem Predicts Over 10 Billion-Dollar Crypto Protocols Will Emerge in the Next 18 Months

US Diesel Prices Reach Record High of 5.820 per Gallon Amid Low Inventories

Bitunix Launches On-Chain Alert Feature

Ethereum Spot ETF Sees $141 Million Net Inflow Yesterday, BlackRock's ETHA Leads with $72.0685 Million

Tether's Relentless Pursuit of Justice Takes a Dark Turn

Guangzhou Court Rules Virtual Currency Loan Contract Invalid, Chang Ordered to Compensate Jin 199,600 Yuan

Robinhood CEO States Goal is to Serve a New Generation of Investors

Guangzhou Court Rules Virtual Currency Loan Invalid, Compensation of 199,600 Yuan

Argo Blockchain CEO Justin Nolan Steps Down, Business Shifts to AI Infrastructure

Spacecoin Forms Partnership with Decen Space

SOL Spot ETF Sees Daily Net Inflow of $6.3996 Million

Base Labs Established to Focus on Open Source AI Research

Blockchain Throughput Increases Over 100 Times in Five Years, a16z Emphasizes Importance of Predictability and Ordering

BCRA: Santiago Bausili defended the reform of the Organic Charter and the possibility of using gold as collateral

Securitize and Socios Partner to Tokenize Shares of Professional Sports Teams

Discussion on SEC's New ETF Review Process Sparks Conflicts of Opinion

Number of Hyperliquid Users Surpasses 2.5 Million

Hyperscale Data Shuts Down Bitcoin Mining for AI Deal Worth Over 1.2 Billion

Circle Reserve Attestation Shows USDC Backing Above Circulating Supply

Cardano Constitutional Committee Renewal Approved with 72.0% Support

Revolut – What Could Reach the Tax Office in 2026?

End of Shopping Tourism: Why Traveling for Electronics No Longer Makes Sense







