JPMorgan strategist Mislav Matejka maintains a bullish outlook on equities, advising investors to buy the dip amid periodic geopolitical turbulence. In his view, the current macro environment remains supportive with solid earnings, contained inflation, and favorable growth-inflation dynamics expected to persist through 2026.

Matejka argues that temporary market weakness driven by geopolitical events should be viewed as buying opportunities rather than trend reversals. He downplays inflation concerns from rising commodity prices or heavy capital spending in AI, defense, and infrastructure, noting that inflation trends are actually softening. Recent economic data supports his optimism, with ISM at a three-year high, payrolls at a 10-month peak, and U.S. industrial production posting its strongest gain in nearly a year.

Within equities, Matejka favors Value stocks, small caps, and international markets including emerging markets. He sees rotation away from U.S. megacaps as justified given extreme positioning and elevated concentration in the Mag-7 group. International equities have already outperformed the U.S. by 12% in 2025 and are ahead by another 8% year to date. Matejka warns that without the Mag-7 regaining leadership, it will be difficult for U.S. equities overall to advance.