JPMorgan tells clients to use geopolitical weakness to add, as fundamentals are constructive

The bank expects near-term risk-off after geopolitical escalation, but sees weakness as a buying opportunity over 3-, 6-, and 12-months; says fundamentals are supportive, activity is resilient, consumer wealth effect is positive, and corporate capex is backed by robust earnings. JPM says Mag-7 and anti-AI groups have derated sharply, with relative P/E near 10-year lows and record lows respectively; while both may lag, absolute downside is seen as more limited. The bank reiterates its preference for leadership broadening towards Value, small caps, International and EM over DM; cautions on Software, Business Services and Media; it also flags mining rally as maturing.