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Market Correction Could See 40 Percent Drop, JP Morgan Exec Says

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March 8–Although equity markets are still in a growth cycle, an eventual correction could mean a decline of 20 to 40 percent, according to a top executive at JP Morgan Chase & Co.

“Markets are functioning, and we’re doing well,” Daniel Pinto, JP Morgan Co-President and Co-Chief Operating Officer, said in an interview with Bloomberg Television on Thursday. “We know there will be a correction at some point.”

Pinto estimated that the markets have two to three years before the end of the growth cycle. He said that while volatility has come down, markets are still going to react to “anything that relates to inflation or growth.” Eventually, when liquidity dries up, markets could fall as much as 40 percent. “The most important thing for someone like us is just to be prepared. Because at those times are when the client really needs you,” he said.
Pinto doubted the markets would head into correction territory now, primarily because the global economy is strong and inflation is only going up gradually. Furthermore, he said, central banks “are being very prudent in the way they adjust and normalize monetary policy.”
, Market Correction Could See 40 Percent Drop, JP Morgan Exec Says, Global Economic Report

In a separate interview with Bloomberg Television, JP Morgan Chairman and CEO Jamie Dimon offered a similar sentiment. “One day we will have a recession. I don’t think it will be this year,” he said.

 

Market Correction Could See 40 Percent Drop, JP Morgan Exec Says, Global Economic ReportCopyright secured by Digiprove © 2018 Patti Mohr
, Market Correction Could See 40 Percent Drop, JP Morgan Exec Says, Global Economic Report

Patti Mohr

Patti Mohr is a U.S.-based journalist. She writes about global diplomacy, economics, and infringements on individual freedom. Patti is the founder of the Global Economic Report. Her goal is to elevate journalistic principles and share the pursuit of truth in concert with others.

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