J.P. Morgan Asset Management
The latest research and outlooks in the ProAllocate library
- Thematics
Will the data center backlash slow the AI buildout?
J.P. Morgan's Stephanie Aliaga argues political backlash against AI data centers, evident in midterm election results, raises costs and delays but is unlikely to derail the buildout given strong economic incentives. Post-2028 projects face the greatest uncertainty, while a shakeout of speculative developments may benefit well-capitalized hyperscalers.
- Private Markets
Keeping it real: Real assets, real rates and inflation
J.P. Morgan's David Lebovitz argues that higher real rates, not inflation itself, are compressing private real asset valuations, with repricing speed and mechanics varying across real estate, infrastructure and transportation. He concludes future returns will depend on income and growth rather than multiple expansion.
- Fixed Income
Financing the AI buildout and its implications for credit markets
JPMorgan Asset Management estimates the five major US hyperscalers face a combined $1.1 trillion external financing gap for AI infrastructure, creating expanding credit opportunities but requiring careful security selection as leverage and structural complexity rise.
- Emerging Markets
Emerging market debt shows greater resilience in a more volatile world
J.P. Morgan Asset Management argues emerging market debt has proven more resilient than expected, citing improved fiscal balances, reserve buffers and flexible exchange rates. It favours duration and selective credit exposure but stresses country differentiation remains essential.
- Equities
Income and resilience when global equity leadership is narrow
J.P. Morgan's Mayur Patel argues narrow, AI-driven equity leadership makes European dividend stocks attractive for diversification and income. He favours banks, utilities and telecoms for resilient cash flows and valuation support relative to concentrated global indices.
- Macro
What does a Democratic Congress mean for markets?
J.P. Morgan's Jordan Jackson and Stephanie Aliaga argue Democrats' decisive midterm win creates gridlock limiting stimulus and tax changes while raising shutdown and debt-limit risks. They expect equities to benefit historically from divided government, with a costlier but intact AI buildout and gradually easing tariffs and inflation.
- Macro
Now You Can See Everything
J.P. Morgan's Michael Cembalest reviews Democratic gains in the US midterms as a rebuke of Trump-era policy, then examines AI-driven market trends and warns that corporate fraud, exemplified by Theranos, remains corrosive to investor trust.
- Wealth Management
Capital gains season: An efficient way to monitor year-end distributions
J.P. Morgan Asset Management promotes its Heatmap Analysis tool, which tracks year-end capital gains distribution estimates across 30,000+ funds to help advisors manage after-tax outcomes and time trades around record dates.
- ETFs
Active Fixed Income ETFs: Myth vs Reality
J.P. Morgan Asset Management rebuts four common misconceptions about active fixed income ETFs, arguing that liquidity, trading costs, after-fee performance and genuine active management are better than perceived.