"US Equities 10% Up Side Over Next 12 Months" JP Morgan Equities Strategy Say.

Industrial and construction material stocks will be among the sectors that will benefit as U.S. markets hit fresh highs over the next year, JPMorgan Private Bank head of equities strategy at the wealth management arm Grace Peters told CNBC on Tuesday, to benefit from the economic recovery following the coronavirus crisis. 

While there will also be further bouts of stock market volatility, she recommended using share price falls to add more cyclicality which are stocks that see their prices move in line with economic cycles. 

More specifically, JPMorgan is advising investors to add cyclicality within areas of business that are seeing “structural growth,” such as digital transformation and health-care innovation, as well environmentally driven trends. 

The private bank forecasts that the S&P 500 would rise to between 3,500 and 3,600 points by the end of this year and then 3,750 by September 2021, representing a potential 10% rise from its last close at nearly 3,352 points. 

“We think certainly that the U.S. markets can make new highs over the next 12 months … we still think the earnings picture for the U.S. corporate is very strong … and also it’s that broader economic backdrop when we look at equities relative to other asset classes,” she told CNBC. 

“So U.S. equities to us, we can see around a 10% upside over a 12-month view,” she added.