Why JPMorgan is telling investors to keep buying the dips even as market hits new highs

JPMorgan says investors should buy geopolitically driven weakness, arguing that lower rate expectations in the second half and rising earnings growth forecasts are supportive for risk assets. The note is constructive on markets overall, with the main tailwinds coming from easing rate expectations and improving earnings outlooks. Impact is more likely on sentiment and positioning than on immediate price action.

Analysis

JPMorgan says investors should buy geopolitically driven weakness, arguing that lower rate expectations in the second half and rising earnings growth forecasts are supportive for risk assets. The note is constructive on markets overall, with the main tailwinds coming from easing rate expectations and improving earnings outlooks. Impact is more likely on sentiment and positioning than on immediate price action.