But market participants may be getting ahead of themselves in predicting a recession, said Ben Mandel, global strategist at JPMorgan Asset Management.
"From the perspective of markets, clearly the recession probability has risen considerably, at least in so far as what's priced in, I think probably mistakenly," he told CNBC's "Squawk on the Street" on Wednesday.
What's given rise to heightened concern about an impending recession is the combination of tightening global financial conditions, evidence of a slowing U.S. economy at the close of 2015 and falling oil prices, Mandel said.
But each one of those shocks in isolation is not sufficient enough to derail U.S. growth, he said.
"Clearly the fact that they're all happening at the same time has caused markets to price in that more systemic recession scenario a little bit higher," he said. "A few months from now, when we look back at this experience, I think it'll be a false alarm."
Darrell Cronk, Wells Fargo Investment Institute president, also said the market is overdoing it when it comes to pricing in a recession. He said he believes oversupplied oil markets, which are driving stocks lower, are beginning to balance.
However, investors should be on watch for sovereign defaults among commodity producers in emerging markets with oil now trading in the $20-$30 per barrel range, he said Wednesday on "Squawk on the Street."
On Wednesday, the Institute of International Finance reported that investors took $735 billion out of stocks, bonds, currencies and other assets in the emerging markets.
"The dynamics don't look good there, the fundamentals don't look good, the currencies don't look good, the growth rates don't look good. It's a perfect storm of headwinds for most of the emerging markets. going forward," Cronk said.