Don't rely on tech stocks: Why JP Morgan is betting on Europe's comeback – and sees the dollar wobbling

The three golden rules for the second half of the year are: buy quality, diversify regional risks, and pay attention to inflation protection. The biggest obstacle for the markets, according to JP Morgan, is "the fear of danger."

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The political turmoil of the first half of the year casts a long shadow over the capital markets – but there are also bright spots. Tilmann Galler, capital markets strategist at JP Morgan Asset Management, sees a robust global economy as a stable foundation amid geopolitical uncertainty. Despite political noise, many companies continued to show strong balance sheets and solid earnings. But Galler warns: The greatest dangers currently come not from facts, but from fear itself.

Specifically, Galler sees a dangerous interplay between politics and market psychology. The "fear of danger" is paralyzing consumers and businesses alike. Uncertainties about future price developments and supply chains are delaying investment decisions – with potential real economic consequences. "The mood is changing," Galler says. Such uncertainty could become a self-fulfilling prophecy – with economic slowdowns.

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