Take, for example, ChatGPT, the artificial intelligence (AI) language chatbot that launched in November 2022 and attracted over one billion visits just during February 2023.
Many of the fast-growing disruptors we think will drive innovation in the coming years are early-stage private companies. To access such opportunities means turning to private market investing.
JP Morgan believes private markets are likely to offer higher long-term returns than the public equity market benchmark, and the past few months' tough macro environment hasn't dimmed our excitement. Recent technical dynamics lean in private funds' favor. And we have strong conviction in the fundamental timeliness and necessity of many emerging innovations.
Growth equity does come with risks. Return dispersion among fund managers should rise, as loss ratios likely do. Plus, growth investing inherently comes with a higher loss ratio than the broad equity markets.
The six areas of growth and innovation in which JP Morgan has the strongest conviction are artificial intelligence (AI), automation and robotics, cybersecurity, ecommerce, cloud software, and electrification.
