Top JP Morgan strategist Marko Kolanovic says there will not be a recession this year and there will be an increase in consumer activity this summer. The co-head of global research at JPMorgan Chase & Co shared his views in an interview with Bloomberg, stating “We can climb out of this hole.”

Kolanovic is convinced that U.S. inflation is about to peak, or has already done so, and will alleviate price pressures so that the Fed will be able to slow its pace of tightening, though Fed Chair Jerome Powell has stated that unless there is a “clear and convincing” sign that inflation is slowing the central bank will continue to raise rates. And indeed, inflation was still rampant in April and reports show that monthly figures surged more than expected.

But Kolanovic contends that many of the bad things analysts predicted would happen this year have already happened, including the Fed’s hawkish pivot, the war in Ukraine, and the lockdowns in China that are slowing growth in that country’s economy.  He’s maintained a bullish stance despite the recent dips, even advising that investors add risk as markets are factoring in too high of a price on the odds of a recession. But investors are clearly still fearful of stagflation and have been shifting to cash, according to a Bank of America survey that is cited in the article.

Though Kolanovic is optimistic, he does take the long view, taking into account the recent equities rout. But he maintains that investors shouldn’t generalize their strategies because benchmarks like the S&P 500 run the gamut from expensive to cheap stocks. While he’s shying away from more defensive companies like dividend-payers and staples, he’s favoring innovation, biotech and international growth shares, telling Bloomberg that he sees “significant opportunity” in those sectors.