Stock Market Crash: JPMorgan Warns Recession is 'Far From Priced In'

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'The risk of recession is far from priced in': JPMorgan warns stocks are set up for a 'bearish outcome' as investors crowd into the top names in the market at rates last seen in the 2000 and 2008 bubbles

Investors are crowding into the biggest stocks in the S&P 500 at levels seen in prior bubbles.On a surface level, the

"S&P 500 index staged an ~8% rally so far this year, however, the underlying market breadth by some measures is the weakest ever — narrowest stock leadership in an up market since 1990s," said JPMorgan's Global Head of Equity Macro Research."Further, equity upside has been driven by a combination of very narrow growth leadership...and rotation into safety."

Take the top 10 stocks in the S&P 500, for example. They currently make up 28.7% of the index, which is in the 96th percentile all-time, and higher than during the dot-com bubble and the Global Financial Crisis. The 11-50th stocks, meanwhile, make up 35% of the index, less than they do 75% of the time. This shows a high level of crowding at the very top of the S&P 500.Looking even more minutely, the largest two stocks in the S&P — Apple and Microsoft — currently make up 13.

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