Investing.com -- JPMorgan told investors in a note Monday that they should use any renewed market weakness as a buying opportunity, arguing that the conditions for another V-shaped recovery are in place even as geopolitical uncertainty persists.

Analyst Mislav Matejka stated that while markets may see further volatility from a potential re-escalation in the Middle East, investors with a three-to-twelve month time horizon should be adding risk during pullbacks.

"Military conflicts inherently display fat tails and drive elevated volatility, but we argued against succumbing to bearish views as the risk of getting whipsawed increases significantly," Matejka wrote.

JPMorgan notes that bearish sentiment had become the consensus view two to three weeks into the conflict, with oil prices widely expected to spike further and investors heavily de-risked.

The bank said that setup, combined with oversold signals, was the cue to start adding exposure, a call it first made on March 23.

On the macro backdrop, Matejka believes the current environment differs meaningfully from 2022 in terms of inflation pressures, corporate pricing power, real rates and the labor market, and reiterated a call for long duration regardless of how the conflict evolves.

S&P 500 2026 earnings per share estimates have continued to move higher, and JPMorgan said central banks should look through an anticipated 1.5 percentage point rise in year-on-year inflation.

On positioning, JPMorgan said it expects international stocks, emerging markets, small caps and value to resume outperforming, consistent with its year-ahead outlook.

"We think the relative performance should move to fresh highs in 2H," Matejka wrote, adding that EM inflows, which stalled during the conflict, are likely to resume.