‘The risk of recession is far from priced in’: JPMorgan warns stocks are set up for a ‘bearish outcome’ as investors crowd into the top names in the market at rates last seen in the 2000 and 2008 bubbles

• A recession is not priced into stocks, JPMorgan’s Dubravko Lakos-Bujas says.
• Investors are crowding into the biggest stocks in the S&P 500 at levels seen in prior bubbles.
• Lakos-Bujas sees a rotation into defensive, low-volatility stocks continuing.

On a surface level, the S&P 500 looks like it’s having a stellar start to 2023. After closing out 2022 down 20%, the index has risen nearly 9% this year.