J.P. Morgan strategists said that after the recent decline, investors can increase their stock positions before the end of the year. They believe that economic growth is still resilient, and that the decline in bond yields is likely to support risky assets rather than a warning sign of recession. A team led by Mislav Mateka wrote that the recent influx of capital into the defense sector has been excessive. If economic activity remains resilient, oil prices fall, and US bond yields stabilize, the high-risk cyclical sector in the market is expected to rebound. The team believes that bond yields have peaked. Investors are advised to lay out a wider range of individual stocks and not just take heavy positions on leading tech giants. The bank maintains overallocation to emerging markets and the Eurozone; it remains neutral to the US, Japan, and the UK.

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