In an interview with Insider, eToro investment analyst Callie Cox highlighted the two biggest risks to monitor this year.
"The kicker here is that services inflation is the type of inflation that the Fed can best control through the job market," she said.
"But one bright spot of this scenario," Cox said, "is that it would take care of the inflation problem because when demand drops, inflation comes down."
And as far as stocks, Cox likes a defensive positioning with consumer staples, utilities, energy, and pharmaceutical companies.
"If we do hit a recession," Cox said, "it's a great time to slowly build up your risk appetite in anticipation of us getting through it."