JPMorgan urges dip-buying in 2026 as macro setup shifts

JPMorgan strategists led by Mislav Matejka say investors with at least a three-month horizon should use any stock weakness to buy, arguing 2026 presents a very different setup from 2022 as inflation pressures ease and pricing power softens. The note favors long-duration assets sensitive to rate moves and anticipates a reversion toward international stocks (VXUS/EEM) as tensions ease. EPS forecasts for the S&P 500 remain positive, eurozone earnings growth looks solid, and EM valuations remain deeply discounted to developed markets (EM ~34% cheaper; Europe trading around 14x 2026 earnings versus the S&P 500 ~19.5x). A fading dollar-safe-haven bid could further bolster non-US equities in the second half.