The U.S. economy will likely be in a recession by the summer of 2023, says Jamie Dimon. He’s the Chief Executive of JPMorgan Chase & Co.
Highlights from Dimon’s interview with CNBC
Dimon agreed the economy, for now, was in good shape and consumers were still spending 10% more on a year-over-year basis.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
But runaway inflation, continued rate hikes, quantitative tightening, and the Ukraine war, he warned in an interview with CNBC’s Julianna Tatelbaum are all pointing to a possible recession in the not-so-distant future.
These are very serious things, which I think are likely to push the U.S. and the world into some kind of a recession six to nine months from now.
Dimon, however, refrained from commenting on how severe that recession could be.
S&P 500 could lose another 20%
More alarming for investors, though, was his forecast for the S&P 500.
The benchmark index is already down 15% from its high in mid-August. But Jamie Dimon says another significant move to the downside is not off the table.
I think the likely place you’ll see more of a crack and more of a panic is credit markets. S&P 500 a ways to go. It could be another easy 20% and the next 20% will be much more painful than the first.
If true, that forecast places S&P 500 below the 3,000 level. Last month, the U.S. Federal Reserve also agreed that chances of a “soft landing” would be rather slim as it continues to lift rates to fix inflation.
Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro.
10/10
68% of retail CFD accounts lose money