JPMorgan analysts say US stocks are likely to outperform Europe through 2025.

The Key Takeaways

• Analysts at JPMorgan said that the outperformance of U.S. stocks compared to their peers abroad is expected to continue next year.
• It will take some time to resolve a number of issues, such as the Trump transition and the trade and economic policy.
• Separately, another note from JPMorgan analysts predicted that the S&P 500 will continue its rally and crack 6500 by the end of 2025.

Analysts at JPMorgan wrote that stocks in the U.S. will continue to outperform their European counterparts for the rest of the year.

However, stocks across the board are likely to slow in the first half of next year as some uncertain political factors—such as the transition to the Trump administration and the trade effects of its economic policies—are realized, the analysts wrote.

You can also find out more about the following: “current phase of polarized regional market performances is likely to extend” Analysts wrote that they will continue to write as Trump’s tariffs and new policies take effect. The analysts also pointed out that so far in 2018, the U.S. Stock Market has performed better than international counterparts by 22%.

The Small Caps Are Expected to Benefit from 2025

The analysts expect that the U.S. business will continue to expand. “uncertainty” Over the coming year, smaller capitalization companies will experience a reduction in their stock prices. The analysts said they expect small-cap stocks will benefit from Trump’s expected deregulation and the increased merger and acquisition (M&A) activity that could follow.

International stocks could outpace U.S. Stocks. “clearly there” The analysts pointed out that U.S. stocks are already traded at a very high P/E multiple. “one first needs to get more clarity on trade and on geopolitics fronts” Before predicting the shift.

Separately, another group of JPMorgan analysts outlined in a different note on Wednesday a 2025 target of 6500 for the S&P 500, joining similar recent projections from Goldman Sachs (GS) and Morgan Stanley (MS). JPMorgan analysts warned that policy changes next year may cause the market to be more volatile, but stated they still believe “opportunities are likely to outweigh risks” As deregulation and capital investments related to artificial intelligence could increase the market.

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