Keep Calm and Carry On Buying the Dip, Says JPMorgan
TLDR:
- JPMorgan tells investors to buy any stock dips — the 2026 setup differs from 2022
- Geopolitical constraints largely remain intact despite Iran conflict
- Three-month horizon positions are favoured over short-term bearish views
- European strategist Mislav Matejka leads the bullish equity call
The Case for Buying the Dip
Any investor with a time horizon of at least three months should use weakness in stocks as a buying opportunity, according to a new research note from JPMorgan strategists. Mislav Matejka, who leads the JPMorgan team as head of European strategy, is warning investors against succumbing to bearish views at a time when markets have been rocked by the Iran conflict and broader geopolitical uncertainty.
Matejka and his team argue that the various political, economic and military constraints against further escalation remain largely intact. Even three weeks into the Iran conflict, the JPMorgan strategy team was advising clients that oversold signals had begun to appear — and that conviction in the buying-the-dip thesis appears to be solidifying further.
Why 2026 Is Not 2022
The research note, published on Monday, draws a clear distinction between the current market environment and that of 2022 — the last time markets faced significant geopolitical turmoil. The 2022 setup was defined by aggressive monetary tightening, soaring inflation, and a Federal Reserve that was behind the curve in addressing price pressures. In contrast, 2026 presents a very different picture for investors willing to look beyond short-term volatility.
The strategists observe that markets could be susceptible to renewed escalation in the Strait of Hormuz, but they maintain that on any time frame from three months out, the present situation represents a buying opportunity. This view stands in contrast to more bearish positioning that has become fashionable amid the recent market turbulence.
Market Implications
For investors in Asia and Malaysia specifically, the JPMorgan call carries particular relevance. Malaysian equity markets have felt spillover effects from the broader geopolitical tensions, with energy-sector volatility impacting consumer and manufacturing costs. A sustained recovery in risk appetite driven by stable geopolitical constraints could benefit emerging market assets, including Malaysian equities and the ringgit.
The note also references key equity ETFs — VXUS, EEM, and SPX — as indicators that global investors are watching the situation closely. The extent to which these signals stabilise in the coming weeks will be a key test of the JPMorgan thesis.
