The region’s equities are buttressed by a substantial valuation gap against US peers and a macro environment of lower interest rates
[SEOUL] Investors fret about the overvaluation risks in AI-themed investments, but Asian equities are a fertile hunting ground – buttressed by a substantial valuation gap against US peers and a macro environment of lower interest rates.
This was the view of heads of regional and global equities at the JPMorgan Asset Management Asia Media Summit in Seoul last week.
Expectations of US equities remained “constructive”, as a global CIO panel expressed. But investors need to “keep expectations realistic”, said Paul Quinsee, the firm’s global head of equities. “We lean positive on AI, and that’s how we’ve basically been for the last two years. The market was feeling excited about AI just a few months back at the end of April and it’s much less excited now. But you have to be a little contrarian and keep expectations realistic.
