JPMorgan believes that the market today is overly optimistic about a possible “soft landing” of the economy, and as financial conditions worsen, investors will move to stocks that are not yet overvalued, as well as to defensive assets, writes Business Insider.

In this regard, JPMorgan has identified 4 sectors in the stock market that can generate maximum profit in the second half of the year.

Strategist Marko Kolanovic of JPMorgan believes a soft landing for the economy doesn’t look as likely as one might think as the economic outlook becomes increasingly cloudy. That said, the likelihood of a recession next year is actually higher than many expect, at 65%.

The danger, in his opinion, comes from defaults, which are beginning to rise as credit conditions tighten: since the beginning of the year, the total number of defaults on high-yield and credit obligations has exceeded last year’s total number of defaults for the entire year.

To diversify and hedge their portfolio, investors are better off choosing defensive stocks and switching to cash and commodities.

Commodity prices are most exposed to recession risk and stand out because they are undervalued and underpinned by strong fundamentals and technicals,” Kolanovic said.

In addition to commodities and cash, Kolanovic recommends investors look at utilities, healthcare, consumer staples and telecom stocks, as these sectors have historically been among the best performers during Fed rate hikes.