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Recession is not off the table: Strategist

Dovishness by Federal Reserve Chair Janet Yellen sent the market into a rally Tuesday, which extended into Wednesday, but a recession is going to "rear its head," according to this marker strategist.

While her firm does not foresee a financial downturn within the next year and a half, Samantha Azzarello, global market strategist at JPMorgan Asset Management, told CNBC's "Closing Bell" on Wednesday that she doesn't think a recession is "off the table."

Signs of an impending recession are a decelerated GDP and widespread weakness across five to six different measures, she said.

Yellen spoke before The Economic Club of New York on Tuesday, where she said that "given the risks to the outlook, [she] consider[s] it appropriate for the committee to proceed cautiously in adjusting [monetary] policy."

Azzarello thinks that after Yellen's comments the strategist does not expect yields to increase this year and foresees money to continue "pouring" into defensives.

"We still like cyclicals over defensives and we're sticking with that, and that's the consumer story; we're not falling into a recession story," Azzarello said Wednesday. "But ... within defensives, we are looking at utilities."

According to Thomson Reuters I/B/E/S, earnings are projected to drop nearly 7 percent year over year.

While the market has held the rally post-Yellen, Keith Fitz-Gerald, chief investment strategist at Money Map Press, told "Closing Bell" that the market should buy the expected dip during earnings season.

"They're wallpapering over a wall that really has nothing to stand on," he said. "I think we'll have a good buying opportunity a couple weeks from now when earnings come in."


Conversely, Alan Valdes of Silverbear Capital contends that with a troubled earnings season the market is set to experience more volatility.

"These guys have been spot on with their forecast in the last two years," he said on "Closing Bell." "I think it's going to be a down quarter."

— CNBC's Dominic Chu contributed to this report.