JPMorgan strategists urge buying during market dips

JPMorgan strategists, led by Mislav Matejka, maintain a positive outlook on the stock market, suggesting that investors should use market corrections as opportunities to increase positions. The firm argues that strong corporate earnings growth remains a primary driver for equities, despite high bond yields and persistent inflation concerns.

According to the team, improving earnings revisions mean that any market weakness would likely lower price-to-earnings (PE) ratios, making stocks more attractive. The macroeconomic environment is also noted as positive, with manufacturing indicators in the US and the eurozone approaching four-year highs.

While global equities have shown resilience—with the S&P 500 rising approximately 13% and the MSCI All-Country World Index rising about 14%—JPMorgan analysts suggest that US stocks might lose their leadership position by the end of the year. They expressed the view that non-US equities have a strong chance of outperforming American stocks for the second consecutive year.