JPMorgan’s equity strategy team, led by Mislav Matejka, advises investors to treat market pullbacks as buying opportunities. The bank maintains a bullish stance throughout 2026, citing strong corporate earnings momentum as the primary driver for market resilience.
The bank argues that rising earnings estimates effectively lower price-to-earnings ratios during selloffs, making stocks more attractive. This strategy persists despite concerns over rising global bond yields and persistent inflation, which have caused market volatility.
Analysts point to manufacturing indicators in the US and the euro area, which are currently near four-year highs, as evidence of a healthy real economy. JPMorgan acknowledges that higher bond yields increase discount rates, but believes earnings growth remains strong enough to offset this pressure.
The bank suggests that investors focus on earnings quality and view market fluctuations as a normal feature of the current profit cycle. The upcoming earnings season is identified as a critical test for the validity of this investment strategy.
