JPMorgan Analyst Favored Equities Over Bonds

The firm recommends prioritizing stock growth amid high bond yields.

Updated on Sept. 24, 2026 in Stock Markets

Isometric editorial illustration of a brass balance scale holding a heavy steel block against a thin sheet of paper, symbolizing portfolio rebalancing. — JPMorgan analyst Grace Peters has recommended investors prioritize equities over bonds, citing strong 2027 corporate earnings expectations despite high bond yields. AI Illustration. Upload story photo >

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With rising interest rates, is now a good time for you to invest in stocks?

JPMorgan Chase & Co. analyst Grace Peters has recommended that investors favor equities over fixed income. This strategic shift follows a period where bond yields reached their highest levels in more than two decades.

Why it matters

Equities are being positioned as the primary growth engine for portfolios due to high 2027 earnings expectations. Investors are currently seeking companies that demonstrate strong pricing power and visible revenue streams.

U.S. government long-dated bond yields hit a 20-year high on September 24, 2026, while oil prices climbed above $100 per barrel. The U.S. 10-year Treasury rate increased by 40 basis points throughout September 2026.

The players

Grace Peters

She serves as a financial analyst at JPMorgan Chase & Co. who provides strategic market outlooks for investors.

JPMorgan Chase & Co.

This is a major global financial services firm that provides investment banking and asset management services.

The details

Rising yields, driven by growth data, AI infrastructure supply, and inflation fears, have prompted analysts to look toward 2027 earnings. Grace Peters projects a broadening earnings supercycle where expectations for the coming year are likely to be met or raised.

July 2007 marked the previous benchmark for the 10-year Treasury yield levels.
The 10-year Treasury rate moved by 40 basis points during September 2026.
Bond yields reached their highest point in two decades on September 24, 2026.
Earnings expectations are projected for the 2027 fiscal year.

Stock Markets
Sept. 18
US Stocks Declined as Treasury Yields Rose
Economic Indicators
Sept. 22
U.S. Treasury Auctioned Two-Year Notes
Inflation
Sept. 18
Bank of America Warned Fed Rates Could Exceed 5%

Market Dynamics

This move signals a broader transition in asset allocation as markets return to interest rate environments not seen since the July 2007 10-year Treasury yield benchmark. It reflects a departure from long-term low-rate cycles toward a period of higher cost of capital.

Retail investors may need to adjust their portfolio allocations to account for higher yields in fixed income versus potential equity growth. Those holding bond-heavy portfolios should consider how interest rate volatility in 2026 influences long-term savings goals.

The takeaway

Investors should focus on companies with clear pricing power to hedge against inflationary pressures. Maintaining a diversified portfolio remains critical as analysts anticipate a shift in the broader earnings cycle for 2027.