JPMorgan Chase, the bank behemoth of the world’s largest stock exchange, says that one index is primed for a turnaround and will outperform S&P 500 over the next decade.
JPMorgan’s Andrew VanWazer & William M. Smith, in a recent investment strategy note say the S&P 500 Index has outperformed the MSCI EAFE Index for a period of 16 years. However, this may be changing.
The MSCI EAFE Index measures the performance of stocks in Europe, Australasia, and Far East. The index is used by investors to benchmark the performance of their international equity portfolios.
VanWazer & Smith Say
JPMorgan believes that the US’s market superiority is beginning to crumble, especially in the technology sector. This follows China’s announcement of DeepSeek, a Chinese artificial intelligence startup, launching a platform that competes with America’s best AI platforms.
Analysts at JPMorgan believe that the uncertainty surrounding US foreign and economic policies, the deterioration of consumer confidence and rising inflation as a result of Trump’s tariffs could be catalysts to a change in the market leader.
JPMorgan Asset Management’s Long-Term Capital Market Assumptions forecasts that EAFE shares may outperform US stock by 1,4% (8.1% versus 6.7%) within a 10-to-15-year time frame. Investors have been doubtful of this prediction. However, recent events on the market have shown how susceptible US stocks may be to increased volatility in tech-stocks, trade tariffs, and declining consumer confidence .”
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As new information becomes available, this post JPMorgan Chase sees one stock market index outperforming S&P500 over the next 15 years Amid US Policy Insecurity and Declining Consumer Confidence could be updated.
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