The trend of "rising in the east and falling in the west" remains unchanged! JP Morgan: cautiously watching US technology stocks, Chinese technology stocks still attractive.

JPMorgan recently released a stock strategy report, with a neutral view on US stocks, a cautious attitude towards growth investment styles and US technology stocks, but still optimistic about Chinese technology stocks. JPMorgan stated that US stocks benefit from a preference for growth investment styles, but concentrated risks are very high. Combined with the high valuations of US stocks, JPMorgan is no longer overweight on US stocks. However, JPMorgan does believe that economic activity in the US will be stronger than in other countries, and the US market may benefit from animal spirits and relaxed regulations. Additionally, if trade uncertainty escalates, the adverse impact on the US stock market is relatively small. During times of risk aversion, the US stock market usually outperforms other stock markets. JPMorgan reaffirmed its cautious stance on growth investment styles and US technology stocks. Behind JPMorgan's neutral view on tech stocks this year, in addition to strong past performance, high valuations, ample positions, and high expectations, the bank still insists that historically, winners of technological disruptions are often newcomers rather than existing companies. Recent news may lead to overall market expansion and steep adoption curves for artificial intelligence, casting doubts on the high valuations and expenditures of mega-cap companies like Alphabet Inc. Class C (GOOGL.US) and Microsoft Corporation (MSFT.US), basic model companies like OpenAI and Meta (META.US), and NVIDIA Corporation (NVDA.US). The dominance of the "Big Seven" may continue to be challenged. Nevertheless, JPMorgan is not bearish on tech stocks because their balance sheets and earnings are much better than in the late 1990s. JPMorgan once again calls for a shift from the hardware and semiconductor sectors to the software sector. It is worth noting that, considering the more attractive valuations, JPMorgan still likes Chinese technology stocks. Additionally, with the end of the potentially poor-performing fourth-quarter earnings season and stimulus measures on the horizon, JPMorgan hopes to buy Chinese cyclical stocks in the first half of this year, and is optimistic about the telecommunications, real estate, healthcare, insurance, and software sectors.