Markets are pricing in a high chance of a recession

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1. It's time to load up on consumer staples,?according to Bank of America. The firm just trimmed its S&P 500 forecast and said the market is pricing in a?"1 in 3 chance" of a recession, with the greatest risk being prolonged heightened inflation.?

But investors can ready themselves by?arranging their portfolios defensively, BofA said, by snapping up consumer staple stocks. With increased?recession risks on the horizon, the bank?raised the sector?to overweight from underweight.?

"Better-than-expected consumption (especially in the lower income cohort) despite inflation and a big uptick in spending on services (admittedly at the expense of big ticket spend) are positive," BofA noted.

JPMorgan, meanwhile, thinks energy stocks are worth keeping an eye on.?The energy space remains the?best equity investment?as commodity prices continue to rise, the firm said.?

"Energy is the only sector that is seeing its quality, growth, and momentum scores improve simultaneously," JPMorgan analysts wrote in a?Thursday note.

Even though energy is up roughly 38% this year, analysts predict that upside remains because?demand is going to outpace supply?leading up to 2030.

"In our view, fundamentals and valuation make a?compelling case?for the sector," JPMorgan concluded.

2. A 26-year market vet laid out three indicators that show stocks could be set up for another rally.?After a big sell-off in April, Lance Roberts said upside could be coming.?Plus, he shared seven stocks and two bond ETFs to watch in the months ahead.

3. The US economy just took a big step closer to a recession, but the chief economist of Ameriprise Financial isn't concerned.?He said that weak growth, high inflation, and war have weighed on the market —?but he said investors can play a huge market reversal by buying stocks in these three sectors.?

4. This crypto bull and research director said ethereum can eventually rise to $35,000.?Geoffrey Kendrick thinks comparing crypto to tech stocks back in 1999 is actually a compliment —?and he shared which two altcoins he's eyeing right now.

5. The average American got a real pay cut of almost 4% in the last year.?Inflation-adjusted wages fell 3.7% in the year through March as higher prices eroded strong pay gains.?Now, inflation throughout the economy is leaving Americans with much weaker buying power.

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