JPMorgan warns: Inflation risks lurk beneath the high levels of the US stock market

Glonghui, May 11 — Grace Peters of JPMorgan stated that global fragmentation, artificial intelligence, and inflation are currently the three key forces shaping the market, and recent events such as the war in the Middle East have made these trends even more urgent. Peters warned that rising capital expenditures could intensify inflation risks, recommending that investors strengthen portfolio resilience by allocating inflation-resistant assets such as gold, while maintaining a relatively short duration allocation in bonds. She remains optimistic about corporate earnings growth, expecting that, amid rising capital expenditures and AI-driven profit margin improvements, earnings growth will outpace levels seen in recent decades.