JPMorgan Chase & Co.'s (NYSE:JPM) asset-management arm advised investors to stay invested in stocks and other higher-risk assets in the second half of 2026, amid an AI boom and resilient consumption, despite persistent inflationary pressure.

David Kelly, chief global strategist at JPMAM, told Bloomberg on Wednesday, "The good news in terms of baseline forecast is we think the economy will strengthen in the middle of the year." He attributed that strength partly to income tax refunds and stimulus checks from Washington, besides AI spending. 

However, Kelly predicted that the Democrats could take control of the House after the mid-term elections, raising questions on the potential stimulus checks in 2027.

"It's an OK economy for Americans; it's a great economy for the stock market," he stated, while adding, "We're not forecasting recession…The wealth effect and the AI boom keep us going."

Kelly stated that the U.S. is in the fourth year of a very strong bull market, but warned of high “concentration risk.” The strategist stated that the next bear market could be centered ...