J.P. Morgan – Mid-Year Investment Outlook

The U.S. economy is expected to see gradual moderation in growth, jobs, and inflation, supporting long-term risk assets. International economic data are improving, with room for further growth due to low consumption and inflation. Central banks may move before the Fed, keeping the dollar strong. Interest rates are expected to stabilize, but the yield curve may remain inverted. U.S. equities are supported by earnings growth, AI investment, and buybacks, although valuations are high. Global equities are catching up, with potential for strong performance. Alternatives can provide diversification and protection against inflation. The outlook for 2024 is positive, but diversification across high-quality assets is recommended.