JPMorgan Strategists Advise Buying Dips on Strong Earnings Outlook

JPMorgan strategists led by Mislav Matejka are advising investors to buy into dips in equities, citing a robust corporate earnings outlook. They see the rally continuing despite concerns over rising global bond yields and inflation jitters.

The team notes that improving profit revisions will make stocks cheaper by reducing their price-to-earnings ratios. This means any market weakness would provide an opportunity for investors to buy into equities at a lower cost.

Matejka's team also points out that the macro environment is positive, with manufacturing indicators in the US and the euro area near four-year highs.