A new report by JPMorgan analyst Jan Loeys suggests that traders should be selling stocks following the recent market rally. According to the report, JPMorgan now sees a 33 percent chance of a U.S. recession sometime in the next year.

“The eventual recession should bring US stocks down some 30%, creating a strong downward risk skew to returns over the next few years,” Loeys explained.

She notes that even if the U.S. avoids a recession, the firm projects only low single-digit earnings growth and nothing to suggest multiple expansion will be happening anytime soon. That means that JPMorgan sees risk skewed to the downside when it comes to stocks.

The firm is…

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