JPMorgan billionaire warns on market bottom

Billionaires

Major stock indices reached or neared multiyear lows Monday as the market continues to tank, and the head of the largest bank in the U.S. said the worst may still be on the horizon for stocks and the economy, outlining how a forthcoming recession may play out.

Jamie Dimon, chief executive officer of JPMorgan Chase. | Photographer: Al Drago/Bloomberg via Getty Images

33%. That’s how much the Nasdaq is down this year, on pace for its biggest loss since 2008. The Dow is down 20%, which would also be its worst performance since 2008.

The U.S. economy is actually already technically in a recession according to one popular marker, with its gross domestic product declining over the last two quarters. The Dollar Index, which measures the dollar against a weighted basket of six global currencies, has surged about 20% year-to-date to its highest level in two decades as investors pack into the safe asset. The Dow rose 5% last Monday and Tuesday as the market traded on hopes the Fed would back off of its most aggressive plans, but pared gains after several important data points indicated more rate hikes are on the way, including a falling unemployment rate.

Recession Watch: Bear Market Deepens As Fed Official Warns Rate Hikes Will Trigger ‘Failures’ Around Global Economy (Forbes)

‘Real Danger’ Of Global Recession Intensifies As Rate Hikes Threaten $4 Trillion In Economic Losses, World Bank Warns (Forbes)

‘This is serious’: JPMorgan’s Jamie Dimon warns U.S. likely to tip into recession in 6 to 9 months (CNBC)

A Better-Than-Expected Jobs Report Causes Markets To Plummet: Here’s Why (Forbes)

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Forbes Staff
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