Leading US bank says current market sell-off is not like 2022 and investors should use weakness to add exposure

JPMorgan’s equity strategy team says the current market sell-off is not analogous to the 2022 stagflation episode and urges investors to use weakness to add exposure. In an April chartbook, the bank argues wage growth is cooling, corporate pricing power is limited, and geopolitical risks (linked to the Iran conflict) face headwinds that make prolonged escalation less likely — meaning a resolution or de‑escalation could quickly reverse the recent risk‑off move. JPMorgan warns equities would suffer further if oil rises materially but cautions short‑term traders about headline risk; it recommends investors with 3‑, 6‑ or 12‑month horizons increase allocations. Regionally, it maintains a preference for international and emerging markets over the US (noting MSCI World ex‑US was +11% YTD vs flat US returns) and favors value stocks and small caps over growth.