J.P. Morgan Asset Management reports that investors should maintain positions in equities and other higher-risk assets through the second half of 2026. The institution, which oversees $4.3 trillion in assets, asserts that the surge in artificial intelligence investment and resilient consumer spending will sustain US economic expansion, even as inflation persists and the Federal Reserve holds interest rates steady.

Addressing concerns that the significant year-to-date rally in US stocks leaves the market vulnerable to correction, the firm highlights strengthening economic momentum driven by corporate capital expenditure on AI infrastructure.

Concurrently, high-income consumers continue to drive demand, buoyed by the wealth effect from rising asset prices. While noting that bonds are regaining appeal due to elevated yields and emerging markets are increasingly tied to the Asian chip supply chain, the outlook recommends diversification into defensive sectors such as real estate, infrastructure, and transportation, alongside European and Japanese markets.