JPMorgan AM highlights better value outside the United States

Investing.com -- JPMorgan Asset Management expects investors to find a wider set of opportunities outside the U.S. as profit growth improves across global markets and valuations look more appealing.

In an interview with Bloomberg TV, global market strategist Kerry Craig said the backdrop is shifting in favor of regions that have lagged the U.S. rally.

“Now you are seeing earnings growth coming through and the valuations on a relative basis looking better for the rest of the world,” he said, calling it a moment for investors to broaden their exposure.

The investment firm argues that elevated price-to-earnings multiples may persist as earnings momentum spreads beyond the U.S.

“We’re potentially in a structurally different regime where PEs just are a bit higher going forward,” said Hong Kong-based portfolio manager Jordan Stewart.

Craig noted that many portfolios remain heavily tilted toward the U.S., pushing investors to consider a “broader array of ways” to gain exposure — whether by tapping into the AI build-out in Taiwan and South Korea or diversifying through China and Hong Kong.

Korea, he added, is particularly well placed to benefit, with memory chipmakers such as SK Hynix (KS:000660) and Samsung Electronics (KS:005930) still trading at comparatively lower valuations.

Stewart expects the AI theme to extend well beyond technology hardware. He said U.S. utilities, which outperformed in 2025, should see that momentum carry into 2026.

“There’s a lot of demand for infrastructure and energy support to power all this artificial intelligence and we think that will continue.”

JPMorgan Asset Management remains constructive on risk assets heading into 2026 and does not anticipate a recession.

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