Goldman and JPMorgan say buy the dip as inflation seen temporary

Jitters over surging prices and concerns that the post-pandemic rebound is now past its peak dragged the S&P 500 Index 5% below its September record last week, after almost a year without a correction

Stagflation fears may be rising, but strategists at some of Wall Street’s biggest banks say it’s a good time to buy the dip in stocks.

“Despite near-term uncertainty, we expect the equity market will continue to rally as investors gain confidence that the current pace of inflation is transitory,” Goldman Sachs Group Inc. strategists led by David J. Kostin wrote in a note to clients.

Strategists at JPMorgan Chase & Co. led by Mislav Matejka concurred, writing that stagflation fears will start to fade. 

Jitters over surging prices and concerns that the post-pandemic rebound is now past its peak