economy
February 18, 2026
JPMorgan prefers international stocks to America’s
A strategy team at the investment bank said in a note to clients that they prefer international stocks to those listed in the United States.
TL;DR
- JPMorgan is recommending an overweight position in emerging markets versus developed markets, and international developed markets over the U.S.
- Emerging market equities have outperformed developed market equities, driven by strong inflows and attractive price-to-earnings ratios.
- Japan and Europe are expected to outperform U.S. equities, benefiting from expansionary fiscal policies and compelling valuations.
- JPMorgan strategists prefer European banks over defense stocks for 2026, due to attractive valuations and improved profitability in the banking sector.
- Concerns about erratic policy decisions, geopolitical tensions, and the Federal Reserve's independence are factors driving investors away from U.S. assets.
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