On Investors’ Minds - APAC Edition Market Outlook 2026: Why stay invested in stocks and bonds?
Dec 18, 2025
In this engaging discussion, Marcella Chow, a Global Market Strategist at J.P. Morgan Asset Management, explores the investment landscape for 2026. She emphasizes the ongoing appeal of equities due to earnings growth, AI advancements, and market dynamics. Marcella highlights the positive performance of Asian markets and AI's role in driving export growth, particularly in Taiwan and Korea. She advises a disciplined portfolio approach, balancing risk and income, while discussing the potential impact of U.S. Fed policies on interest rates and credit markets.
AI Snips
Chapters
Transcript
Episode notes
Valuations Backed By Earnings And Buybacks
- Elevated US valuations are supported by robust medium-term earnings growth and AI-driven investment.
- Lower rates and record buybacks boost equity returns by raising present value of cash flows and EPS.
AI Expands Tech Supply Chains In Asia
- AI demand is broadening tech supply chains beyond the US into Taiwan, Korea and China supplying GPUs, servers and components.
- Asian markets gain from AI via exports, data-center investment and a growing regional AI ecosystem.
Be Disciplined: Diversify And Rotate
- Reduce concentration risk and rotate into sectors and regions with stronger fundamentals and valuations.
- Balance growth with income by mixing defensive sectors, value names and covered-cost strategies to manage volatility.