JPMorgan Chase & Co.’s asset-management arm advised investors to stay invested in stocks and other higher-risk assets in the second half of 2026, amid an AI boom and resilient consumption, despite persistent inflationary pressure.
David Kelly, chief global strategist at JPMAM, told Bloomberg on Wednesday, “The good news in terms of baseline forecast is we think the economy will strengthen in the middle of the year.” He attributed that strength partly to income tax refunds and stimulus checks from Washington, besides AI spending.
However, Kelly predicted that the Democrats could take control of the House after the mid-term elections, raising questions on the potential stimulus checks in 2027.
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“It’s an OK economy for Americans; it’s a great economy for the stock market,” he stated, while adding, “We’re not forecasting recession…The wealth effect and the AI boom keep us going.”
Kelly stated that the U.S. is in the fourth year of a very strong bull market, but warned of high “concentration risk.” The strategist stated that the next bear market could be centered around whichever sector has the maximum hype.
“And that’s everything to do with AI,” he said.
Meanwhile, JPMorgan Asset Management, in its 2026 midyear outlook, released on Monday, suggested investors to look for defensive alternatives such as real estate, transportation and infrastructure to diversify their investment.
Stocks Hit Highs, Debate Widens
A sharp sell-off in technology and chip stocks last week, ahead of the high-stakes Space Exploration Technologies Corp. IPO, sparked a fierce debate on Wall Street, but Fundstrat’s Tom Lee viewed the market dip as a “healthy” consolidation.”
Trending: Caught With Nothing Saved for Retirement? These 5 Game‑Changing Tips Could Still Save You
Lee said the broader uptrend is still intact and downplayed concerns that SpaceX’s mega-listing signals a market top, arguing that widespread belief in a peak often suggests the market is not actually at one.
Meanwhile, Steve Neamtz, CEO of Yorkville America Equities, managing the Trump Media & Technology Group‘s Truth Social Funds, told Benzinga, last week that despite the benchmark index reaching record highs, over 300 of its stocks are considerably trading below their all-time highs, indicating untapped opportunities and urging investors to look beyond tech stocks.
Echoing JP Morgan’s David Kelly, Neamtz highlighted defense sector, real estate bets in the Sun belt region and American energy producers as the storehouses of a real American growth story.
Image via Shutterstock
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Arrived
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ARK7
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Doroni
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Immersed
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Vinovest
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EnergyX
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FarmTogether
Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.
EquityMultiple
For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.
Fundrise
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American Hartford Gold
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Mode Mobile
Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.
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