We no longer support this browser. Using a supported browser will provide a better experience.

Please update your browser.

Close browser message

The COVID-19 pandemic has killed thousands, upended daily life, halted the economy and shattered asset valuations. While a pandemic may be new to most of us, market volatility is not. Shocks like these remind us why we rely on our investment principles and how important it is to have portfolios that are aligned with our clients’ overall plans and goals. This crisis has also sharpened our focus on what we do best: advising clients on which building blocks can help weather the storm, finding securities that are not reflecting their fundamental values, and identifying trends that will drive growth in the future. To help shed light on the current market environment, we’ve outlined below the key investment themes and “megatrends” that have emerged.

Durable trends for the coming years


At the beginning of the year, we were focused on three megatrends that we thought would drive growth into the next decade: digital transformation, healthcare innovation and sustainability. While the COVID-19 shock brought macro volatility back to the forefront, we believe these trends will drive growth into the next decade. The pandemic, if anything, is likely to accelerate these trends around the world. The digital economy is flourishing, healthcare innovation will provide the ultimate solution to the crisis, and sustainability issues such as food supply and pollution have also been exposed.


Digital Transformation

  • Underappreciated opportunities in tech companies with significant scale-up potential can deliver double-digit earnings growth
  • Growth in new applications and use cases across industries for artificial intelligence (AI) and big data technologies will be a core driver of revenues
  • Enabling-technologies such as 5G are paving the way for future, yet-to-be-launched “killer apps,” including remote surgery, augmented reality and autonomous driving

Healthcare innovation

  • Confluence of healthcare data and AI is accelerating the speed of innovation in healthcare
  • Breakthroughs in gene-based technologies are leading to innovative solutions to treat and maybe cure diseases in ways that weren’t possible before
  • Regulatory approvals of these new treatments are expected to rise, and peak sales from these treatments are yet to be reflected in company and industry valuations


  • A more sustainable future will be a defining movement of the decade
  • Efficiency increases and cost improvements in clean energy technology are making it not only a sustainable choice, but also economical, driving increased adoption
  • Consumer preferences and government focus on moving to a circular economy will spur yet-to-be realized opportunities in packaging, recycling, food and water technologies, and more


Please reach out to discuss these topics in further detail. We stand with you, ready to help, offer advice and share our best thinking.


Related & Recommended

Find growth now with the investment megatrends of tomorrow

Find growth now with the investment megatrends of tomorrow

The current market pullback gives long-term investors a compelling entry point into innovative businesses reshaping the global economy and our lives.

Navigating volatility


Volatility across asset classes spiked in March to levels not seen since the great financial crisis. The COVID-19 shock was a stark reminder that proper diversification and downside mitigation are critical to investment success. These strategies are designed to diversify risk exposures and have a keen focus on protecting capital during drawdowns.


Peserving capital

Downside mitigation is just as important as upside capture

  • If investors alternate 50% gains with 50% losses, they end up destroying capital. That’s why diversification and downside protection are critical to investment success. We are focused on using active managers that have a proven track record of mitigating losses on the downside while participating in the upside.


Traditional solutions are losing their buffers

  • The classic “portfolio” is often thought of as a mix of 60% equities and 40% fixed income. The equity portion provides capital appreciation, while the fixed income portion provides protection when growth slows and equities lose value. When growth slows, interest rates tend to fall and bond prices rise. Now, bond yields are at their lowest levels in a century. This means that the price for traditional protection is high. Investors should expand their tool kits to consider assets such as hedge funds and gold.

Focus on quality

Target well-run companies with resilient earnings

  • The COVID-19 shock offered a reminder of a simple investing principle: When the going gets tough, investors move toward quality businesses. For example, large cap stocks have outperformed small cap stocks during downturns, and companies with more onerous debt burdens have underperformed. Another perspective on “quality” is the prospect for growth. Companies with clear and attractive future earnings trajectories are less susceptible to short-term disruptions in revenues and earnings.

Please reach out to discuss these topics in further detail. We stand with you, ready to help, offer advice and share our best thinking.

Related & Recommended

What will investing look like after COVID-19?

What will investing look like after COVID-19?

Even in the fog of war against the virus, the coming investment landscape is beginning to emerge.

5 stats to know this week

5 stats to know this week

Does the current rally have legs? It comes down to simple(ish) math.

Can gold continue to shine?

Can gold continue to shine?

Gold can play an important role against an uncertain outlook for markets.

Locating value in dislocated markets

The COVID-19 shock also created a rush to the exits in many assets. Many investors sold what they could, not what they wanted to. This creates opportunity for those with capital to take advantage of assets that are trading at levels that do not reflect their fundamentals or our view of the future.


Capital advantage

Those who can provide capital in times of stress have the upper hand

  • Participants with excess capital have an edge over those who have to scramble for cash. In other words, those with capital can demand a premium to lend excess cash to participants who need the money. Further, investors who sold what they could, not what they wanted to, caused assets prices to decline much more forcefully than was warranted by fundamentals. Taking advantage of these dynamics could offer compelling returns.     

Outside the box

Explore opportunities for nontraditional returns

  • Investing can be about buying assets at low prices and selling them at higher ones, but there are much more consistent ways to earn compelling returns. For example, exchanging volatility for downside protection and attractive coupons can be an effective strategy. 

Winners and losers

Identify opportunities that may be overlooked

  • The market has started to differentiate the assets that should be able to weather the storm from those that can’t. However, opportunities may arise if investors hastily sort potential winners into the losers’ basket. Some examples include certain sectors that are traditionally more consumer-driven and cyclical in nature, such as homebuilders, select financials and media companies.

Please reach out to discuss these topics in further detail. We stand with you, ready to help, offer advice and share our best thinking.

Related & Recommended

COVID-19 almost broke the bond market. Then the Fed stepped in.

COVID-19 almost broke the bond market. Then the Fed stepped in.

The Fed’s decisive action has likely averted a worst-case scenario, and it has critical implications for investors.

How to navigate U.S. municipals in a liquidity crunch

How to navigate U.S. municipals in a liquidity crunch

Don’t join the panic. Your guide to discerning investment in munis.

The case for upper-tier high yield bonds

The case for upper-tier high yield bonds

With attractive valuations, low expected defaults and Fed support, the upper-tier high yield bond market might provide some investment opportunities.


Important Information

This material is for information purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management businesses, part of JPMorgan Chase & Co. (“JPM”). Please read all Important Information.


Any views, strategies or products discussed in this video may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this video should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision.  For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan representative.


Certain information contained in this video is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this video. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this video, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this video constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this video shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party.  Nothing in this video shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions. 


Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, “J.P. Morgan”) have an actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits J.P. Morgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when J.P. Morgan invests in an investment product, such as a mutual fund, structured product, separately managed account or hedge fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate, such as J.P. Morgan Investment Management Inc.; (2) when a J.P. Morgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when J.P. Morgan receives payment as a result of purchasing an investment product for a client’s account; or (4) when J.P. Morgan receives payment for providing services (including shareholder servicing, recordkeeping or custody) with respect to investment products purchased for a client’s portfolio. Other conflicts will result because of relationships that J.P. Morgan has with other clients or when J.P. Morgan acts for its own account.

Investment strategies are selected from both J.P. Morgan and third-party asset managers and are subject to a review process by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we believe fit our asset allocation goals and forward looking views in order to meet the portfolio's investment objective.

As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies will be high (in fact, up to 100 percent) in strategies such as, for example, cash and high-quality fixed income, subject to applicable law and any account-specific considerations.

While our internally managed strategies generally align well with our forward-looking views, and we are familiar with the investment processes as well as the risk and compliance philosophy of the firm, it is important to note that J.P. Morgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude J.P. Morgan managed strategies (other than cash and liquidity products) in certain portfolios.


In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank managed investment accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

References to “J.P. Morgan” are to JPM, its subsidiaries and affiliates worldwide. “J.P. Morgan Private Bank” is the brand name for the private banking business conducted by JPM. This is intended for your personal use and should not be circulated to or used by any other person, or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications, please contact your J.P. Morgan representative. 

© 2020 JPMorgan Chase & Co. All rights reserved.


Check the background of Our Firm and Investment Professionals on FINRA's BrokerCheck

To learn more about J. P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our  J.P. Morgan Securities LLC Form CRS and  Guide to Investment Services and Brokerage Products.

This website is for informational purposes only, and not an offer, recommendation or solicitation of any product, strategy service or transaction. Any views, strategies or products discussed on this site may not be appropriate or suitable for all individuals and are subject to risks. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor's own situation. 

This website provides information about the brokerage and investment advisory services provided by J.P. Morgan Securities LLC (JPMS). When JPMS acts as a broker-dealer, a client's relationship with us and our duties to the client will be different in some important ways than a client's relationship with us and our duties to the client when we are acting as an investment advisor. A client should carefully read the agreements and disclosures received (including our Form ADV disclosure brochure, if and when applicable) in connection with our provision of services for important information about the capacity in which we will be acting.


Equal Housing Opportunity logo

J.P. Morgan Chase Bank N.A., Member FDIC. Not a commitment to lend. All extensions of credit are subject to credit approval.

Investments in alternative investment strategies is speculative, often involves a greater degree of risk than traditional investments including limited liquidity and limited transparency, among other factors and should only be considered by sophisticated investors with the financial capability to accept the loss of all or part of the assets devoted to such strategies.

Borrowing with securities as collateral involves certain risks, including the possibility that you may need to deposit additional securities and/or cash in the account to meet a maintenance call, and that securities in the account may be sold to meet the maintenance call.  Proper management of your account and a thorough understanding of the conditions that may affect your investments will assist you in effectively using the margin lending program.​

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

Please read additional Important Information in conjunction with these pages.