U.S stocks endured a miserable start to the week as investors weighed the prospect of higher interest rates for longer and a recession warning from JPMorgan CEO Jamie Dimon. The market has turned decidedly bearish — as can be seen in a lack of activity among long-only hedge funds, said Wall Street veteran Farzin Azarm. Instead, he’s seeing a lot of short selling in the market, particularly in the growth sector. “Nobody is long growth, nobody has long, risky assets. Everyone is hiding in defensives. Everyone is holding on to a massive wad of cash and more importantly, people are waiting for a panic to happen,” Azarm, managing director at Mizuho Americas, told CNBC’s “Street Signs Asia” on Tuesday. Dimon warned Monday that the U.S. was likely to enter a recession over the next six to nine months, and that the S & P 500 could fall by “another easy 20%.” His remarks came as the stock market kicked off a big week with third-quarter bank earnings and upcoming key economic data, including a highly anticipated inflation print on Thursday. But Azarm says a panic is “not going to happen.” Indeed, he said there were “some signs” the Fed could pivot a little at its November meeting, and he would not be surprised if the central bank hikes by 50 basis points, rather than the 75 basis points that the market is expecting. Three stocks he loves Azarm could well be one of the few bulls in an otherwise bearish market right now. “When there’s blood on the streets, that’s when you want to be out there buying,” he said. “There’s always going to be short term pain — that’s the way it works.” Unsurprisingly, he’s a fan of growth names. “I think the positioning on growth and high multiple names is so low. If there’s going to be a risk to the upside, it’s going to be those names,” he said. One of Azarm’s top picks is cybersecurity firm Palo Alto . He likes the company’s 44% growth in billings in the fourth quarter, which he described as “solid” free cash flow. Palo Alto also had a very strong fourth quarter, according to Azarm, and has an “unbelievable” margin outlook going into 2023. “If I want to dabble in growth, this is one name that I want to be in,” he added. Ride hailing firm Uber is another name that Azarm likes. He said the company has a dominant market share and is delivering on both its mobility and delivery businesses. “You are looking at a very cheap company with a solid management,” he said. Chinese e-commerce giant JD.com also made his list, as he expects China to pump more stimulus into the economy heading into the 20 th Party Congress — China’s biggest political event of the year. “I love JD more than at any other time. I think some of these names are getting punished more than they should be,” he said.