JPMorgan warns of volatility as conflict grows and to avoid 'bearish views.’ How to invest without getting ‘whipsawed’

This rebound is the astir optimistic script for the markets, characterized by a steep diminution followed by an arsenic accelerated rebound. On a enactment chart, it looks similar the missive "V."

According to JPMorgan Head of European and Global Equity Strategy, Mislav Matejka, a re-escalation of struggle could trigger much short-term swings. Still, investors with a three- to twelve-month clip framework should adhd vulnerability during pullbacks.

"Military conflicts inherently show abdominous tails and thrust elevated volatility, but we argued against succumbing to bearish views arsenic the hazard of getting whipsawed increases significantly," Matejka wrote, arsenic reported by Investing.com.

The slope besides noted that sentiment has shifted recently, with galore investors de-risking their portfolios and positioning for a prolonged downturn amid expectations that lipid prices volition climb.

Instead, JPMorgan said that a operation of bearish statement and oversold method signals has historically marked the benignant of setups that precede a rebound — a telephone the slope archetypal made connected March 23.

JPMorgan argued the existent situation is characterized by much unchangeable ostentation and firm pricing power, alongside a still-strong labour market. The slope added that adjacent if ostentation rises by astir 1.5% year-over-year owed to vigor shocks, cardinal banks are apt to powerfulness done the summation alternatively than respond with contiguous tightening.

The existent ostentation complaint sits astatine 3.3% twelvemonth implicit twelvemonth arsenic of March 2026 (2). That's a 0.9% summation from February 2026.

At the aforesaid time, net expectations for the S&P 500 person continued to rise. As of April 2026, the existent anticipation for the year-over-year net maturation complaint for the S&P for Q1 2026 was 13.2% (3).