While it's unclear if there will be a severe recession, there is one outcome that investors can bank on, Parker wrote: stagflation.
The market is implying a nearly 100% chance of weak economic growth paired with rampant inflation, which is a nightmarish economic scenario.
UBSHowever, Parker wrote that the market selloff still has room to go as tighter financial conditions hurt estimates for earnings and economic growth.
Besides interest rates, economic activity is the biggest driver of stocks right now, Parker wrote.
More broadly, sectors for quality growth include consumer discretionary, healthcare, and technology, Parker wrote.
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