Fixed income offers a 180-basis-point yield premium over the dividend returns from stocks.
The S&P 500 is entering a bull market just as bets firm for another Federal Reserve rate hike in July.
“The US banking crisis has increased the demand for gold as a proxy for lower real rates," the bank wrote.
The argument is that bonds, particularly higher-rated ones, will be able to better weather any economic slowdown.
Yields have yet to reach their peak and fully price in downturn risks, said the CIO of fixed income.
JPMorgan argues that a gradual easing in inflation should be positive for cyclical stocks.
The Fed's fixed focus on inflation is starting to sink in with investors.
At least one analyst is calling for a precipitous decline in interest rates during a recession.
The S&P 500 has jumped almost 15% from a June low, more than double the climb by global shares ex-U.S.
Market observers said it's too soon to predict how the Fed may react to the latest inflation data.