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The current economic climate is ripe with concerns about costs, interest rates and uncertainties about tariffs, federal policies and more. Still, investors may find new opportunities, especially when diversifying their portfolios to mitigate risk, experts say.
Now, as investors adjust to a new normal, private industry may stand to gain, including on Long Island.
“Long Island is a region with a lot of private industry,” said Jennifer Marks, managing director and market team lead in the Long Island office of J.P. Morgan Private Bank. “A lot of private industry owners might be looking for what their next step is around succession planning, and exit from the company.”
In the past, she said, “you’d see it go from one generation to the next, but it’s not the only option.” That’s especially relevant now, she said, as owners are looking for strategic partners or to sell to a private equity firm, in an environment that she said has improved in the last few weeks.
The current investing climate is the subject of “Comfortably Uncomfortable,” J.P. Morgan Private Bank’s 2025 mid-year global investment outlook. The report looks at global diversification, pressures on the U.S. dollar from rising protectionism, AI’s potential growth and opportunities in secondary markets and more.
“Portfolio resilience emerged as a key theme in our 2025 outlook, underscoring its heightened relevance as investors navigate a new reality,” Grace Peters, co-head of Global Investment Strategy at J.P. Morgan Private Bank, said in a written statement.
“Investors must contend with deep policy uncertainty, still elevated valuations and concentration in U.S. equity markets, and persistent volatility as they anticipate whether the U.S. administration’s more market-friendly proposals will come to fruition in the latter half of 2025,” Peters said.
Initial public offerings and mergers and acquisitions, especially in the first quarter, were challenging because of the cost of capital as well as policy and tariff uncertainty, Marks said.
“Not that we’re completely out of that world, but we have a little bit more certainty,” Marks said. “We still see a lot of engagement from the private equity firms to buy very high-quality assets and companies.”
Now, as companies work through uncertainties around tariffs – perhaps by reducing inventory, slowing down production, finding alternative sources from which to import or transparency with their consumers – private companies may see new opportunities, Marks said.
“It’s giving them the opportunity to show how resilient their businesses are,” Marks said. Navigating challenges shows that “they can continue to work through a choppy environment, which I think will bode well for them over time.
“We’re seeing a resurgence, or a normalization of companies and opportunities hitting the public market opportunity space,” she said.
The full report is available on the J.P. Morgan Private Bank website.
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