jpmorgan's Global Investment Strategy Chief Grace Peters stated that even with rising inflation and new policies on the horizon, the growth outlook for the usa remains strong next year, and investing in gold and infrastructure stocks should help mitigate risk.

"There's no doubt that inflation risks have returned to the agenda," Peters said. "What I want to say is that for me, this is just a yellow light, not a red light. But we have already seen signs, not only in the three-month upward trajectory of core PCE but also in the rise of consumer inflation expectations."

Peters believes that one cannot separate inflation from other factors when assessing the potential impact on risk assets. She stated, "It's about the combination of growth and inflation. When we consider the growth trajectory that the next administration will inherit, it is very strong. We currently see the usa's real GDP growth rate reaching 2% to 2.5%, which is likely to persist for the next six months and may even continue into 2025. Therefore, we still believe the foundation of the usa economy is quite strong."

jpmorgan has just released a report titled "Building on Strength" for its 2025 outlook. Peters noted that next year's goal should be to solidify strong investment positions while reducing new and existing risks.

"Risk assets have generated strong returns for two consecutive years, so the fundamental theme we want to promote is keeping the idea of strengthening portfolio resilience—staying aligned with fundamentals while also managing some tail risks, including higher inflation, and that as the business cycle evolves, growth may weaken and will cyclically weaken at some point.**"

When asked how jpmorgan will respond to the policy environment of the incoming Trump administration, Peters warned that there are still too many unknowns to draw any clear conclusions.

"All of this helps us think about what a resilient portfolio really means in the system we see today. The policy outlook remains very uncertain. We can start to speculate on what this might mean for growth and inflation. This makes us believe that in order to enhance the resilience of the portfolio, it is absolutely necessary to maintain investment. As I previously mentioned, we believe the growth outlook for the next 12 months is very robust, and actually the mid-term is too. But inflation risks exist, geopolitical risks exist, and certainly risks around deficits exist, so we believe that increasing shareholding in infrastructure stocks and gold is critical as two preferred ways to enhance portfolio resilience."

Peters indicated that jpmorgan is advising clients to expand their exposure to stocks. She stated, "For us, another key theme is capital investment, whether in AI transformation or in electrical utilities and security demands. We believe that all of these drive the trend of GDP growth, but the key point is that the stock market is also included."

"Therefore, moving towards global horizons, broadening perspectives, and maintaining investments, but using infrastructure stocks and gold as a buffer," she concluded.

Editor/Rocky