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In this episode of Stocks In Translation, Yahoo Finance's markets and data editor Jared Blikre, along with Yahoo Finance producer Sydnee Fried, sits down with Abby Yoder, executive director, US Equity strategist at JPMorgan to discuss opportunities in large-cap stocks, particularly in sectors like healthcare, industrials, and artificial intelligence.

Yoder notes that the S&P 500 has hit 41 new all-time highs in the past year. In the year ahead, she mentions that strategists are debating where future gains will come from. "Are you going to see it from an earnings standpoint, or are you going to see it from a multiples standpoint?"

Defining earnings versus multiples, she notes, "The way that you get to an index target, so a price for the S&P 500, is [going to] be based on what your earnings outlook is. So, a dollar amount. And then what your multiple is... essentially what price are you willing to pay for those earnings."

Regarding infrastructure investments, Yoder highlights her interest in the aerospace and defense sectors. She also discussed investing in AI, emphasizing that it's important to think about who is actually going to pay for AI and how companies will use it outside of the tech sector. "How do they monetize that? How do they use that? And is it the best spend for them? Is it going to be productive?"

On the topic of healthcare, Blikre and Yoder break down preventative medicine versus reactive care, discussing which does a better job at lowering healthcare costs and improving patient outcomes. Yoder points out that healthcare, like tech, is a growth area that attracts investors, and it's also less volatile because demand for healthcare remains steady regardless of market conditions

Finally, Yoder offers investors a word of confidence. "I think it's really easy to be nervous... we can see that in markets and it does feel like this is a nervous high in terms of the market...level, but we are pretty constructive going forward," Yoder continues, "We think the economic background looks good. The earnings backdrop looks good... and so we feel good about equities at the moment."

Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes on our video hub or watch on your preferred streaming service.

This post was written by Meredith Lawrence.