Investing.com -- JPMorgan strategist Mislav Matejka urged investors to look past near-term geopolitical turbulence and use market weakness as a buying opportunity, arguing in a note that the risk of a prolonged stagflationary shock is overstated.

Despite the MSCI World index completing what JPMorgan described as a "V-shaped rebound," Matejka also cautioned that the rally's surface strength masks underlying fragility.

"Current market breadth is very narrow and nearly all consumer plays are lingering at lows," the note said, adding that "equities complacency is not all that clear cut."

On the Middle East conflict, JPMorgan believes further escalation could paradoxically accelerate a resolution.

"An oil spike and resultant market weakness might not sustain, as an escalation might in fact make an off-ramp more likely," the bank said.

For investors with a horizon beyond the next few days or weeks, JPMorgan said they "should continue using dips to add into" on a three-, six- and 12-month timeframe.

The U.S. bank sees several pillars supporting equities, including strong earnings, a growth-policy backdrop that remains constructive, and bond yields unlikely to sustain their recent spike.

U.S. valuations at 21 times forward price-to-earnings remain stretched, however, and JPMorgan continues to favor international markets and emerging markets over developed markets.

Within regions, JPMorgan flagged the U.K. as offering "a large valuation discount vs other regions, as well as the highest dividend yield globally," describing it as "one of the very good places to hide during the risk-off episodes."