Merryn Talks Money US Stocks Are Expensive. You Should Still Buy Them
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Jul 18, 2025 Nataliia Lipikhina, the head of EMEA equity strategy at J.P. Morgan Private Bank, shares her insights on the complex landscape of US equities. Though the markets seem pricey, she argues for maintaining a strong allocation. The conversation dives into the resilience of the tech sector, driven by AI advancements, and the case for international diversification. Nataliia also highlights India's growth potential and the importance of a well-rounded portfolio, incorporating traditional assets and alternatives like cryptocurrencies.
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US Equity Outlook and AI Impact
- US equity markets, especially tech-driven sectors, remain constructive despite high valuations.
- AI adoption boosts margins and justifies current price-to-earnings multiples around 20-22x.
Diversify US Dollar Exposure
- Maintain a high US equity allocation but diversify currency exposure due to expected dollar depreciation.
- Aim for 60-70% US market exposure, consistent with MSCI World Index allocations.
European Fiscal Stimulus Boost
- Europe is benefiting from unprecedented German fiscal stimulus and increased security spending.
- This supports domestic companies in industrials, financials, and utilities, narrowing the growth gap with the US.