According to South Korean media reports, JPMorgan Chase has rejected the recent narrative of a "summer stock market correction" amid geopolitical risks and interest rate volatility, adopting a bullish stance instead. JPMorgan recommends viewing stock price declines as buying opportunities, stating, "Selling now is like falling into a trap." In a report released on September 1st, local time, JPMorgan's global market strategy team proposed an aggressive investment strategy, recommending "increasing and maintaining equity exposure until the end of the year." This stance contrasts sharply with its cautious attitude just one day earlier. JPMorgan assesses that the stock market decline triggered by geopolitical risks will be a short-term phenomenon, lasting from days to weeks, rather than a quarter. The analysis also points out that the recent rise in US Treasury yields is a "normalization," reflecting economic recovery rather than a resurgence of inflation; with increasingly clear signs of a weakening dollar, the foundation for a stronger emerging market stock market has been laid. JPMorgan now expects the S&P 500 and global stock markets to reach new records by the end of the year, a key reason being the well-balanced earnings per share (EPS). JPMorgan Chase also reversed its previous cautious stance on the technology and memory chip sectors, which are directly related to the South Korean KOSPI market. JPMorgan stated that key semiconductor technology indicators, namely the Philadelphia Semiconductor Index (SOX) and the South Korean market, have entered oversold territory, noting that "the cooling of the AI overheating and the momentum-driven sell-off are essentially over." JPMorgan has listed semiconductors as its top pick, believing they will benefit from increased capital expenditures by hyperscale cloud service providers. Among emerging markets, JPMorgan recommends buying markets with a high proportion of the IT value chain, including South Korea, China, and Taiwan.
