JPMorgan's Quinsee Says Investors Should Look Beyond Big Tech for Strong Returns

Summary

Paul Quinsee, global head of equities at JPMorgan Asset Management, advises investors to diversify away from the concentrated AI and big tech trade. He highlights international value stocks as a strong alternative with attractive valuations and historical outperformance. He also notes that semiconductors remain supported by fundamentals but warns of rising volatility. He expects more moderate equity returns ahead.

• Quinsee recommends diversifying into international value stocks for both style and geographic diversification.
• International value has delivered 40% returns over the past 12 months and 25% CAGR over three years.
• He says semiconductors have strong earnings momentum and are not yet showing signs of peaking.
• He warns of warning signs such as elevated volatility and retail euphoria in tech.
• He expects S&P 500 forward returns around 8-10% annually.
• He dismisses South Korea as a region, calling it a couple of stocks rather than a broad opportunity.
• He notes that European banks and energy have rebounded but are not current recommendations.
• The overall theme is looking beyond the Magnificent Seven for diversified equity returns.