Home News Stock Exchanges The correction on the stock markets may reach 40%

The correction on the stock markets may reach 40%

JPMorgan Chase

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The correction on the stock markets may reach 40% over the next two to three years, warned one of the senior managers of JPMorgan Chase Daniel Pinto. The investors are currently worried about the effect that could be caused by the change in central bank policy and accelerating inflation.
“This could be a deep correction”, said Daniel Pinto. According to him, the adjustment can be between 20% and 40%.
The S&P 500 index has grown by 47% since February 2016.
“We know there will be a correction at some point”, said Daniel Pinto, who manages commercial and investment banking in JPMorgan Chase. He described the markets as “nervous”, mainly because of President Donald Trump’s statements on steel duty. According to him, there is a possibility of a world trade war and for markets this fear is at the forefront.
JPMorgan Chief Executive Jamie Dimon also shared Pinto’s concerns about the duties. In his words, this could hurt growth and investment by wiping out the huge positive effects of tax reform, for example.
“I think we are good for now. One day we will have a recession. I do not think it will be this year, but perhaps at the end of 2019”, said Jamie Dimon.