No Double-Dip Recession: JPMorgan Strategist

David Kelly, chief market strategist at JPMorgan Funds, doesn't believe the pessimism on the US economy. He recommends investors prepare for the market to rise by being slightly overweight stocks and underweight in bonds.

"I think the market is pricing in a double-dip recession and I think it’s probably getting it wrong," Kelly told CNBC on Tuesday.

As Kelly noted, a double-dip recession only has happened once in the last 70 years, and that was in 1982 when then Federal Reserve Chairman Paul Volcker was trying to tame inflation and pushed the Federal Funds rate to 18 percent. "It's very rare," Kelly said.

He recommends that in the unlikely event of a double-dip, investors look at cyclical areas of the market. In particular, he likes technology, consumer discretionary, and developed country stocks.

Kelly believes bonds will have a more difficult decade than the last one. In bonds, he favors short-duration Treasurys, municipals and high-yield corporate bonds.

"People need to just think about how much of this emotional; how much are people fed up with volatility and a lousy decade; and how much of it is logic," Kelly said. "Because logically, the stock market is cheap."

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Disclosure information was not available for David Kelly or his company.