JP Morgan still sees red

The bear market will be with us for some time to come, and this is the perception of many analysts’ sentiment, but that the bottom is still far away was perhaps a less widespread opinion. 

US: according to JP Morgan CEO, the stock market has not finished its decline

After more than a year of a bear market, much of what was to be expected to be discounted in this type of market whether it be equities, commodities, or crypto (although this is a market with younger dynamics that could yield surprises) has already been taken into account but the uncertainties that are still on the analysts’ table suggest that there is still room for the worst. 

The abyss is still uncertain according to some influential investors and insiders. Of this opinion, for example, is Jamie Dimon, CEO of JP Morgan, one of the largest investment banks on the planet. 

JUST IN: JPMorgan CEO Jamie Dimon says the US stock market can easily fall another 20%.

— Watcher.Guru (@WatcherGuru) October 10, 2022

According to Dimon, the US market for example may have to discount an additional gap that the manager estimates to be around 20%.

The gloomy prediction sounds very bad to the ears of those institutional investors who are already moving to slowly begin a buying plan aimed at rebuilding the now deflated portfolios of small and large funds and who may have miscalculated. 

A loss of an additional 20% would mean seeing the S&P 500 drop from the current $3,600 or so to $2880, which would make life very complicated for those who have already begun rebuilding or at least investing in something. 

Adding to the uncertainty and in favor of JP Morgan’s hypothesis come some fears of humanity not yet dormant since the last world war, the danger of escalation involving NATO and especially the use of nuclear weapons whether they are tactical or not. 

In addition to this aspect, there is the fact that the recession has not yet spilled over to the real American economy and that the energy price is not always halting despite the fact that the United States and somewhat all the countries of the world are organizing for energy independence or its expansion. 

The overall picture of uncertainty

The stage is crucial and markets remain volatile even though both employment and inflation are sending reassuring signals that there will be a much milder recession than expected at least in the United States of America. 

If this is true for the States, it will not be so for Europe and developing countries, which due in part to the difficulty of finding raw materials and having to face (at least the old continent) a war at the gates will suffer more from the recession coming in stride. 

In an interconnected world that is the child of a global market, a robust domestic economy may not necessarily suffer damage from foreign interference from Europe or Asia, which nevertheless has the cards to save itself. 

In the hope that the bear market will be short-lived, the prediction of JP Morgan’s CEO brings us back down to earth and puts us on the right track to avoid gambles (at least for now).