J.P. Morgan calls Iran's conflict a good opportunity to bargain-hunt in the stock market, and reiterates its strategy of being overweight in emerging markets for the second consecutive year.

The stock strategy team led by JPMorgan strategist Mislafe Mattaika stated in a report that despite the sharp V-shaped rebound in the global markets after the outbreak of the Iran conflict, they remain optimistic about the outlook for stocks. They also mentioned that any further decline triggered by geopolitical headlines will be viewed as an opportunity to increase investments. The team at JPMorgan pointed out that the momentum of corporate profit growth in various regions is still a key factor supporting stock prices. In 2026, it is estimated that the MSCI Eurozone companies will see an earnings per share growth rate of around 19%, with positive profit expectations in industries such as industrial, financial, and materials. The consensus earnings per share growth rate for MSCI Emerging Markets in 2026 is expected to be 45%, while the profit growth rate for the S&P 500 index in the US is predicted to be around 20%. At the regional level, JPMorgan has reiterated its overweight strategy for emerging markets for the second consecutive year, citing attractive valuations, improving fundamentals, and lighter positions as reasons.