SKN | JPM’s View on the Tech Selloff: Where Dislocation Is Creating Strategic Entry Points

Key Takeaways

• JPMorgan sees selective opportunities emerging following the recent selloff in technology stocks.
• The pullback is viewed as valuation-driven, not a collapse in long-term fundamentals.
• For high-net-worth investors, the moment calls for precision, balance-sheet strength, and disciplined allocation rather than broad risk-taking.

Why This Tech Selloff Matters to Capital Strategy

The recent decline in technology stocks has prompted renewed discussion among global banks about valuation resets and forward-looking opportunities. JPMorgan’s assessment frames the selloff not as a structural breakdown, but as a market-driven repricing following an extended period of concentrated gains.

For high-net-worth individuals, the relevance is not whether markets rebound in the short term, but how volatility reshapes entry discipline, portfolio balance, and risk exposure.

Understanding the Nature of the Pullback

According to JPMorgan’s analysis, the correction has been driven largely by multiple compression, profit-taking, and sensitivity to interest rate expectations. Earnings expectations for many large technology firms remain intact, while balance sheets continue to show strong liquidity positions.

This distinction matters. A valuation reset creates opportunity. A deterioration in fundamentals demands caution. At present, JPMorgan views the environment as leaning toward the former.

Where JPM Sees Opportunity — And Where It Does Not

The bank’s commentary emphasizes selectivity. Broad exposure to technology is no longer sufficient. Instead, focus is shifting toward companies with:

• Strong free cash flow generation
• Limited refinancing needs
• Clear pricing power and margin durability
• Exposure to long-term structural demand rather than cyclical enthusiasm

Highly leveraged growth names and businesses dependent on aggressive capital markets conditions remain vulnerable. The opportunity, therefore, lies in quality rather than momentum.

The Swiss Perspective: Volatility as a Portfolio Input

From a Swiss private banking standpoint, volatility is not an event — it is a portfolio input. Market dislocations are evaluated in terms of how they affect overall asset allocation, liquidity buffers, and long-term capital preservation.

Rather than increasing concentration risk, periods like this often prompt rebalancing across asset classes, currencies, and jurisdictions. Technology exposure is assessed within the broader framework of risk-adjusted returns, not headline performance.

What This Means for Cross-Border Investors

For globally diversified families and entrepreneurs, the current environment reinforces several core principles:

• Maintain liquidity to act selectively, not react emotionally
• Separate long-term capital from tactical market exposure
• Use volatility to improve portfolio quality, not increase leverage

Opportunities exist, but only for investors with the patience and structure to absorb near-term fluctuations.

Final Perspective

JPMorgan’s view reflects a measured confidence rather than optimism. The tech selloff has created dislocations worth studying, not a blanket invitation to increase risk.

For high-net-worth investors, the advantage lies in disciplined execution, strategic allocation, and alignment with long-term objectives. In this environment, restraint is as valuable as conviction.

For a confidential discussion regarding portfolio positioning and cross-border investment strategy, contact our senior advisory team.