Traders, forced to buy stocks as the great inflation trade showed signs of crumbling, are now overweight equities for the first time this year.
Financial professionals appear convinced that the world economy is headed towards 1970s-style malaise.
The S&P 500's 6.5% rout since last week suggests a 92% probability of recession, the bank says.
Treasury yields at decade highs are now tempting big money managers.
Central banks are expected to continue on a path of simultaneous monetary policy tightening.
Strategists warn that the best days may now be over for cheap-looking stocks.
Two new funds are focused on profiting from market volatility.
Big data surprises have caught a heavily hedged investor base off guard.
Market observers said it's too soon to predict how the Fed may react to the latest inflation data.
The bank's model said there was a 40% probability of U.S. recession, down from 50% in June.