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CNBC PRO Talks

JPMorgan asset management global strategist: 'Animal spirits' trump fundamentals during this rally

David Lebovitz, a global market strategist at JPMorgan Asset Management, which oversees $1.8 trillion, said investors may need to rethink how they value stocks during this euphoric market rally on President-elect Donald Trump's promises of pro-growth economic policies.

"The economic data was going to be fine regardless of who got elected president. What I feel like Trump's election has done is brought out some animal spirits. And that's why you are seeing small caps, which are up significantly since Nov. 8, you are seeing a further rally in the banks, the materials, the industrial names. There was underlying support from the fundamentals as it was, but now we got sentiment on our side," Lebovitz said.

In this in-depth interview, Lebovitz discusses:

  • The main changes taking place in the investment landscape.
  • Best places to invest in 2017, including stocks, bonds and global markets.
  • Some of the key economic factors needed to keep the rally going.
  • Why long-term investors should add exposure to health-care stocks.

PRO subscribers can also read the entire transcript of the exclusive interview below.