STOCKS | JPMorgan Strategists: Buy the Dip as Cyclical Sectors Could Rebound

JPMorgan strategists said investors could add to equities before year-end following the recent decline. According to Sina Finance, a team led by Mislav Matejka said economic growth remained resilient and falling bond yields were more likely to support risk assets than signal a recession. The team said the recent rush of funds into defensive sectors had gone too far; higher-risk cyclical sectors could rebound if economic activity remains resilient, oil prices retreat and Treasury yields stabilize. It said bond yields had peaked and advised investors to broaden their equity holdings rather than concentrate them in leading technology companies. JPMorgan maintained overweight positions in emerging markets and the eurozone, and neutral positions in the United States, Japan and the United Kingdom. The team viewed the sharp technology-sector pullback as a buying opportunity, not a reason to turn broadly bearish, and named semiconductors as its preferred AI-related investment. In Europe, it favored mining, capital goods, semiconductors, building materials and luxury goods, while underweighting energy, consumer staples, insurance, media and software.