J.P. Morgan Sees 2.2% Global Growth as 47% of Clients Favor U.S. Equities
Updated
Updated · JP Morgan · Jun 12
J.P. Morgan Sees 2.2% Global Growth as 47% of Clients Favor U.S. Equities
3 articles · Updated · JP Morgan · Jun 12
Summary
J.P. Morgan told its Paris markets conference that 2026 global growth should hold near 2.2%, even as it raised core inflation expectations to 3.4% and warned geopolitics is now directly shaping portfolios.
Nearly 600 clients from 400 companies still leaned risk-on: 47% picked U.S. equities as the best-performing asset class for the rest of 2026, ahead of emerging-market equities at 24% and oil at 16%.
Oil remained the clearest near-term stress point, with J.P. Morgan estimating only 800 million barrels of effective inventory buffer and saying roughly 350 million has already been depleted; Brent is seen staying just below $100.
Rates are expected to stay restrictive, with J.P. Morgan forecasting the Fed on hold for the rest of the year, markets pricing three hikes across the ECB and BoE, and the BoJ expected to deliver at least two hikes.
AI was framed as the market's main earnings engine rather than a side theme, accounting for 80% of cumulative earnings growth since late 2022 and driving 75% of capex and R&D growth.
With oil prices soaring past forecasts, is the global economy headed for a stagflation crisis not seen in decades?
AI promises a productivity boom but is causing a hiring freeze. Which force will ultimately win the battle for the global workforce?
Private credit faces record defaults and frozen funds. Is this the hidden trigger for the next global financial crisis?
Navigating 2026: Global Growth, Inflation Trends, AI-Driven Markets, and Portfolio Strategies
Overview
In 2026, Latin America's economic outlook is shaped by a mild slowdown in GDP growth to 2.1%, following a resilient 2025. This regional trend hides important differences: Mexico is set to rebound with faster growth, while Brazil faces below-trend expansion due to weaker consumption. Colombia's economy will see only a slight boost, as a pre-election fiscal push is offset by falling private investment. These country-specific dynamics highlight how political events and domestic demand are key drivers of growth across the region, reflecting the complex interplay of economic and policy factors in Latin America's evolving landscape.