Where to Hide During Market Shocks

• Bond market volatility, with rising yields, is contributing to tech stock drops and market angst.
• JPMorgan has created an 'AI factor basket' to identify 'places to hide' during AI-related market shocks or geopolitical unrest.
• Recommended diversification includes European equities, Treasuries, gold, and core real estate.
• While bullish on the AI supercycle, investors should stress-test portfolios for AI factor exposure and prepare for potential corrections or 'fatigue' in the theme.

JPMorgan Asset Management's Chief Market Strategist, Gabriela Santos, discusses the importance of diversifying portfolios amidst AI-driven market volatility and bond sell-offs. She highlights 'AI tantrums' as a feature of the current build-out and recommends European equities, Treasuries, gold, and core real estate as safe havens.