Buy Gold and Infrastructure Stocks as Inflation Back On Track in 2025, JPMorgan Suggests
1min read Despite rising inflation concerns, the U.S. economic growth outlook for the coming year remains robust, according to JPMorgan's global head of investment strategy Grace Peters. To mitigate risks, she recommends investors turn to gold and infrastructure equities.
There's no doubt that inflation risks are back on the agenda, Peters said. However, she sees this as more of an amber light than a red light, noting signs of rising consumer inflation expectations and a three-month uptick in core PCE.
Peters emphasized that inflation cannot be viewed in isolation - it must be considered in the context of the overall growth-inflation mix. She said the U.S. is poised to see 2-2.5% real GDP growth over the next 6-12 months, which could continue through 2025, pointing to an underlying U.S. economy that is pretty strong.
In JPMorgan's just-published 2025 outlook, the firm advises reinforcing strong investment positions while managing new and existing risks, including higher inflation and potentially weaker growth down the line.
To build portfolio resilience, Peters recommends adding exposure to infrastructure and gold. She cautioned that the policy landscape under the incoming administration remains highly uncertain, making it critical to diversify and insulate against a range of potential outcomes.
On the equity side, JPMorgan advocates broadening exposures, with a focus on areas like AI, power, and security that are driving capital investment and GDP trends. The firm's overarching message is: Go global, go broad, stay invested, but add insulation from infrastructure and gold.