JPMorgan Urges Buying on Equity Weakness

JPMorgan equity strategists, led by Mislav Matejka, advise buying equities on any market weakness, especially after the Middle East sell‑off.
They cite lower wage growth (~4%) and policy rates near neutral (Fed 3.75%, ECB neutral) as reducing inflationary pressure.
EPS growth forecasts: Eurozone 2026 ~19%, emerging markets 45%, S&P 500 ~20%; expect broader sector leadership beyond AI.
JPMorgan keeps overweight on emerging markets (38% forward P/E discount) and semiconductors, while valuing value and small‑cap stocks as the dollar weakens and yields fall.