Avoid a market bubble with these 'cheap' global stocks, JPMorgan strategist says

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A JPMorgan strategist has selected some global stocks that he believes are set to surge in price, warning that other parts of the market have reached bubble-like territory.

Speaking to CNBC Monday, Eduardo Lecubarri, a global head of small and mid-cap equity strategy at the U.S. investment bank, said investors should be wary of so-called growth stocks that are currently trading on high multiples.

"We have argued since the start of the year that investors needed to run away from stocks trading on high multiples over rich growth expectations," Lecubarri and a team of analysts warned in a recent research note.

"Further analysis adds even more evidence to our claim that buying into such stocks will cost investors plenty of alpha in the months and years to come."

Growth stocks — for example, the U.S. tech giants — are seen as having strong future earnings potential. These stocks typically surged in 2020, but have proved volatile since. This week, the tech-heavy Nasdaq Composite has fallen around 4.5% so far.

However, despite Lecubarri's concerns about some valuations, he said Monday that he remained positive about the stock market and picked a number of firms in the European cyclical space — cyclical stocks are seen as those that do well during times of economic growth.

Here are his picks: