JPMorgan Advises Hedging Portfolios Amid Rising Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: CNBC
- Market Volatility Risk: JPMorgan strategists emphasize the importance of maintaining near-term hedges in light of recent equity selloffs, despite a generally constructive outlook on stocks, to mitigate potential spikes in market volatility.
- VIX Options Strategy: The firm recommends VIX call spread strategies, which provide leveraged exposure to volatility surges at relatively low costs, particularly attractive as short-term upside skew in the VIX market approaches five-year highs.
- Defensive Stock Investments: JPMorgan highlights that defense stocks like Lockheed Martin are poised to benefit from increased U.S. military spending, with approximately 75% of its revenue derived from defense budgets, positioning it well for potential military expenditure expansions.
- Gold as a Hedge Asset: JPMorgan's metals analysts maintain a bullish long-term outlook on gold, forecasting prices to reach $5,000 per ounce by late 2026, driven by rising geopolitical tensions that are likely to accelerate demand for safe-haven assets.
Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMT is 535.50 USD with a low forecast of 430.00 USD and a high forecast of 605.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 582.430
Low
430.00
Averages
535.50
High
605.00
Current: 582.430
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
