The stock market is pricing in a 70% chance of a ‘near-term’ recession, JP Morgan says

The stock market is pricing in a 70% chance of a ‘near-term’ recession, JP Morgan says

If you are a believer that price is truth in the stock market, then the latest research from the Street is worth seeing.

"We estimate U.S. and Euro area equity markets are pricing in a ~70% probability of a near-term recession," said JP Morgan strategist Marko Kolanovic in a research note on Wednesday.

Kolanovic's research sticks out as firms such as Goldman Sachs have predicted a 35% chance of a recession within two years. Deutsche Bank is the only investment bank on Wall Street to outright predict a recession next year.