JPMorgan strategists: Buy the dip, cyclical sectors poised for a rebound

JPMorgan strategists say investors can add to equities before year-end after the recent pullback. They believe economic growth remains resilient and that falling bond yields will most likely act as support for risk assets rather than a recession warning. A team led by Mislav Matejka wrote that the recent rush into defensive sectors has been overdone. If economic activity holds up, oil prices retreat and Treasury yields stabilize, the market's higher-risk cyclical sectors could rebound. The team believes bond yields have peaked and advises investors to position in a broader range of stocks rather than concentrating only on top tech giants. The bank remains overweight on emerging markets and the euro area, and neutral on the US, Japan and the UK.