The stock market has pared a modest downturn, and that means investors can bet on a recovery, according to a top strategist, according to a top strategist at JPMorgan. at JPMorgan. Fears of a recession have grown steadily since the beginning of the summer, and many economists are predicting a second consecutive negative GDP by the end of this week. However, JPMorgan’s Marko Kolanovic said in a note to clients on Monday that the stock market is down year-to-date and lower estimates from Wall Street analysts suggest that negative economic news is likely to fall. poles have been evaluated. One positive potential for equities is that bond traders are beginning to bet that the Federal Reserve may have to cut interest rates next year. as early as March, is one of the reasons many Wall Street advocates say the market is tough this year, Kolanovic wrote: “With the Fed’s top valuation possibly behind us, bad The worst for the risk market and market volatility will be behind us as well,” Kolanovic wrote. Defensive stocks have generally outperformed high-growth sectors like technology this year. , but the Nasdaq Composite was up about 7% in July. As investors get more comfortable with the path of a recession, growth stocks will find their footing, Kolanovic said. Tactically argued in favor of Growth over Value, which can also be demonstrated through a better representation of the Technology sector. Traditional Defensives show the worst relative valuations in history, with the relative P/E of Staples currently trading Kolanovic writes. Kolanovic remains largely bullish on equities in 2022 despite a tough first half that dragged the S&P 500 index into a bear market. The strategist said last month that he expects the S&P 500 to end the year flat. – Michael Bloom of CNBC contributed to this report.