Listen to the latest insights from Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, where he sits down with a variety of thought leader...
Watch the video version on YouTube.
Utilities have traditionally been known for their defensive properties, which makes the combination of robust economic growth, technological excitement and elevated bond yields an unlikely recipe for their strong performance. That said, the sector’s 23% gain kept pace with the broader market last year. In 2025, this momentum should continue. After two decades of stagnant power demand, the electrification of the U.S. economy and the intense power needs of generative artificial intelligence should prompt demand to inflect higher. Additionally, with our aging grid infrastructure and more frequent extreme weather events, finding enough capacity to provide adequate electricity supply won’t be easy. These themes, and others, should highlight winners across the utilities sector. For investors looking to diversify tech exposure, utilities could offer an attractive way to invest in the many themes driving markets today, but with a very different wrapper.
To share what she’s seeing across the utilities sector, Gabriela Santos, my new co-host, will be joined by Teresa Kim, a utilities-focused equity research analyst here at J.P. Morgan Asset Management.
Resources:
Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify
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17:27
Alternative Realities: Building an investment plan with alternatives
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In this episode of Alternative Realities, we explore the dynamic world of alternative investments and their increasing accessibility to a broader range of investors. As these asset classes become more mainstream, we discuss their role in diversifying portfolios and enhancing returns.
Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, is joined by David Lebovitz, Managing Director and Strategist at the Multi-Asset Solutions Group, to discuss the inception and evolution of the Guide to Alternatives. They delve into the structure and importance of alternative investments, the integration of alternatives into multi-asset portfolios and the challenges of sizing these allocations.
Resources:
For more resources on Alternatives, visit our Guide to Alternatives, Principles of Alternatives Investing, and Alternatives 2025 Outlook
Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify
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20:28
Manufacturing a case for industrials
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Despite lagging the broader index, industrial stocks performed well in 2024, gaining over 17% on a total return basis. Sector fundamentals, however, have been more challenged. After an impressive post-COVID recovery supported double-digit earnings growth in 2022, industrial earnings have been in the doldrums alongside U.S. manufacturing activity. In fact, on a year-over-year basis, the sector is on pace to see earnings contract for the last three quarters of 2024. That said, prospects ahead look brighter. With AI and policy tailwinds, increased focus on domestic infrastructure investment and the Fed now easing policy, earnings growth is expected to accelerate in 2025, providing investors with a broad menu of investment options to choose from within the sector.
On this episode, Gabriela Santos, is joined by Rob Maloney, an equity research analyst covering industrials and a co-portfolio manager here at J.P. Morgan Asset Management.
Resources:
Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify
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19:26
Does it pay to invest in payments?
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When people think of the financial sector, they typically think of boring businesses like banks or insurance companies. But the ongoing global shift to electronic payments has created a new, growthier industry of financial technology companies. These businesses tend to feature recurring revenues, high free cash flow, and low capital expenditures. The financial services sector, which houses Visa and Mastercard, returned 28% last year, while the consumer finances sector, home to credit card companies like American Express and Capital One, returned 55%, outperforming the Magnificent 7. Continued growth in consumer spending, a steeper yield curve, and prospects for deregulation could support further upside, though there are risks if regulatory relief isn’t as significant as markets expect. Nonetheless, for investors looking for high-quality growth opportunities outside of mega-cap tech, fintech could certainly be a good place to start.
On this episode of Insights Now, my new co-host, Gabriela Santos, will be joined by David Chan, an equity research analyst covering payment and business services companies here at J.P. Morgan Asset Management, to discuss what David is seeing across this space.
Resources:
Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify
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18:17
Alternative Realities: Institutional strategies in alternative assets
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In this episode of Alternative Realities, we delve into the evolving landscape of alternative investments and their growing role in institutional portfolios. As the world of alternative investing becomes more accessible, we’ll explore how institutions have historically leveraged these assets for diversification and enhanced returns. Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, is joined by Kathryn Pasqualone, Client Advisor within our North America Institutional business, to discuss key themes such as vintage year diversification, liquidity considerations, and the importance of strategic and tactical asset allocation.
Resources:
For more resources on Alternatives, visit our Guide to Alternatives, Principles of Alternatives Investing, and Alternatives 2025 Outlook
Subscribe to the Notes on the Week Ahead podcast for more insights from Dr. David Kelly: Apple Podcasts | Spotify
Listen to the latest insights from Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, where he sits down with a variety of thought leaders for a conversational breakdown of big ideas, future trends, emerging topics and their investment implications to help inform building stronger investment plans for the long-term.
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