JPM | Industrial Spec Sales - Sunday Machinations: Deal under pressure, Recovery confirmed

Research evidence excerpt

JPM | Industrial Spec Sales - Sunday Machinations: Deal under pressure, Recovery confirmed

Specialist Sales J P M O R G A N

21 June 2026

JPM | Industrial Spec Sales - Sunday Machinations: Deal under pressure,

Recovery confirmed

Sam Edmunds

+44 207 742 8733

sam.edmunds@jpmorgan.com

'The Trend is your friend' is one of the great investing adages - but I think you have to treat it a friend that needs a degree of

forbearance. One that you've known for a long time - but might well cancel a dinner at the last minute causing you short term

pain and irritation. The good news is that I had been bigging up my expectations for positive commentary from companies at our

European Industrials Conference that we hosted on Tuesday and Wednesday - and that commentary did not disappoint. The less

good news was that I expected it to drive more broadening of the investment opportunities in the Cap Goods sector - but the

actual impact was, if anything, more funds flowing into the electrification and data center theme. The commentary was positive -

and there have been worries about delays to projects as the political backdrop to DC's gets a little more hostile - but the feedback

from investors post the event is that they have been surprised by how positive the move has been. One caveat, however, is that I

was chatting to clients from Asia and the US - and they largely think we Europeans lack optimism and are far too focused on

valuation. The Cap Goods team feedback thoughts are here. There is an argument to be made that the move higher in our

electrification names was helped by assumptions (I was in this camp) that a deal would see a rotation into less popular sector - so

shorts might have picked up into the signing - but the trend has reasserted itself.