[JPMorgan Chase Strategist: The escalation of conflicts in the Middle East will bring opportunities to increase allocations to risky assets] November 2nd, JPMorgan Chase strategists believe that after the U.S. midterm elections, if the conflict in the Middle East further escalates, it may drag down the stock market and push up oil prices in the short term. However, the impact is likely to be short-lived and will bring opportunities to increase allocations to risky assets. The team led by Mislav Matejka maintains its view: Bond yields have peaked, and economic resilience and strong earnings will support the stock market. Strategists say that the recent shift of funds to defensive sectors is unsustainable and they are optimistic about the recovery of the banking, industrial, commodity and semiconductor sectors. In terms of investment rating, it overweights emerging markets and the euro zone, maintains neutral on the U.S. market, and expects the S&P 500 index to reach a new high before the end of the year.