Equity Bull Market Primed To Continue, but Expect Volatility, Warns J. P. Morgan Private Bank Exec

In the current market environment, investors should prepare their portfolios for possible inflation and volatility, according to a J.P. Morgan Private Bank executive.

Grace Peters, the bank’s co-head of global investment strategy, says in a new interview with Bloomberg Television that recent equity all-time highs make sense due to the overall surge in capital expenditure (capex).

“And obviously that’s not just associated with the AI buildout. If you look at governments directing capital, companies also following suit. The most recent earnings that we saw the past earnings season saw a 12% increase in capital expenditure beyond AI capex, and I do think that economic value is going to flow to owners of risk.”

Peters notes J.P. Morgan Private Bank remains bullish on equities but believes portfolios should be better prepared “for the full range of outcomes.”

“And so we want income with inflation protection. So, infrastructure, which still feels underowned