Strategists recommend adding to equities despite geopolitical risks, citing contained market impact and potential oil price reversal.
JPMorgan strategists advise investors to use recent market weakness tied to Middle East tensions as a buying opportunity. The S&P 500 remains near record highs, down just 2%, signaling limited economic fallout expectations.
Since late March, the firm has advocated purchasing equities during dips linked to the Iran conflict, anticipating eventual de-escalation. Risks of renewed flare-ups persist, but strategists argue adverse headlines should not deter long-term positioning.
A potential easing of geopolitical pressures could reverse Q2 trends in oil prices, inflation expectations, bond yields, and the USD, according to the bank.