{"id":22092,"date":"2024-07-02T05:44:31","date_gmt":"2024-07-02T05:44:31","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/07\/02\/only-a-bear-market-shock-can-upend-tech-jpmorgans-kelly\/"},"modified":"2024-07-02T05:44:31","modified_gmt":"2024-07-02T05:44:31","slug":"only-a-bear-market-shock-can-upend-tech-jpmorgans-kelly","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/07\/02\/only-a-bear-market-shock-can-upend-tech-jpmorgans-kelly\/","title":{"rendered":"Only a Bear-Market ‘Shock’ Can Upend Tech: JPMorgan’s Kelly"},"content":{"rendered":"
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What You Need to Know<\/h3>\n
    \n
  • It would take an extreme blow to market sentiment to derail the flow of cash into the Big Tech names soaring in 2024, the strategist says.<\/li>\n
  • Profit growth for these stocks is expected to slow, while the remaining S&P 500 companies are poised to see earnings accelerate, forecasters say.<\/li>\n
  • For long-term investors, Kelly recommends seeking opportunities outside of Big Tech, given how stretched those stocks\u2019 valuations are.<\/li>\n<\/ul>\n<\/div>\n

    The outsized sway of technology giants over U.S. stocks is likely to persist, absent a major market rout along the lines of what investors endured in 2022, says JPMorgan Asset Management\u2019s David Kelly.<\/p>\n

    The firm\u2019s chief global market strategist is among Wall Street pros who expect earnings growth in the S&P 500 Index will broaden beyond the tech behemoths by year-end.<\/p>\n

    But in his view, it likely won\u2019t be enough to close the wide performance gap between those megacap shares and the rest of the U.S. equity benchmark.<\/p>\n

    That means an extreme blow to market sentiment would be needed to derail the flow of cash into the soaring Big Tech names that have led the market\u2019s advance in 2024, said Kelly, whose firm manages about $3 trillion.<\/p>\n

    Two years ago, for example, tech shares were crushed by the Federal Reserve\u2019s aggressive tightening, and slumped more than the broader market.<\/p>\n

    \u201cWhen you have the next bear market, then I think the highest-flying equities are the ones that are going to be most beaten up as indeed they were in 2022,\u201d Kelly said in an interview. \u201cYou have to have a shock to market sentiment in order to disrupt the pattern we\u2019re seeing in terms of how people are deploying their money.\u201d<\/p>\n

    \"Tech<\/figure>\n

    Big technology companies have been sitting atop the stock market for years, but their grip has never been as tight as it is now.<\/p>\n

    A version of the S&P 500 that makes little distinction between Microsoft Corp. and Macy\u2019s Inc. has trailed its cap-weighted peer by 10 percentage points this year, a record January-June underperformance, data compiled by Bloomberg show.<\/p>\n

    Profit growth for the Big Tech stocks is largely expected to slow, while the remaining S&P 500 companies are poised to see earnings accelerate, in the view of many forecasters.<\/p>\n","protected":false},"excerpt":{"rendered":"

    What You Need to Know It would take an extreme blow to market sentiment to derail the flow of cash into the Big Tech names soaring in 2024, the strategist says. Profit growth for...<\/p>\n","protected":false},"author":1,"featured_media":22093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/07\/only-a-bear-market-shock-can-upend-tech-jpmorgans-kelly.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22092"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=22092"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/22093"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=22092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=22092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=22092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}