JPMorgan Recommends Low-Volatility Staples, Healthcare and Utilities Ahead of Lower Yields
JPM•Equity strategist Mislav Matejka at JPMorgan said central banks are unlikely to hike rates as aggressively as markets price, underpinning a constructive market stance. He recommended buying low-volatility staples, healthcare, utilities and insurance stocks, noting bond yields and oil prices should decline over the next six to twelve months.
1. Market Outlook and Central Bank View
JPMorgan equity strategist Mislav Matejka said the current market differs from 2022 and central banks are unlikely to raise rates as aggressively as markets price, supporting a constructive stance on equities and strong earnings prospects.
2. Recommendation for Low-Volatility Stocks
The firm noted recent underperformance of low-volatility sectors—staples, healthcare, utilities and insurance—has tracked rising bond yields, presenting what it called an attractive entry point that is not conditional on broader market declines.
3. Six- to Twelve-Month Yield and Oil Price Forecast
On a six- to twelve-month horizon, JPMorgan forecasts bond yields and oil prices will likely be lower, suggesting the recommended defensive trade could outperform both if yields spike or if the broader market recovers strongly.
