Markets

JP Morgan Warns of S&P 500 Collapse

An image of a pair of glasses on a newspaper
Credit: Shutterstock photo

JP Morgan Warns of S&P 500 Collapse

(New York)

Investors beware, one of the world's foremost banks has just gone on the record warning investors of an equity market collapse. JP Morgan thinks that a number of factors will come to undermine stocks. In particular, hikes in US rates coupled with decreased easing from the ECB and BOJ will work to undermine US equity valuations. JP Morgan thinks the coming plunge in stocks will be steep as it is citing the possible emergence of "tail risks", or seemingly unlikely scenarios which could have big negative effects on stocks. Bank of America also weighed in on the possibility of a coming fall, saying that "peak liquidity and peak profits [mean a] big top in autumn".

FINSUM : These are some very high profile warnings and investors would do well to listen to them. Our house view is that if things head south in a big way it will not be just because of central banks, but some political/or geopolitical event that works as a catalyst.

  • stocks
  • bank of america
  • fed
  • jp morgan
  • S&P 500

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos

    FINSUM

    FINSUM is the market leader in financial news summaries. We save investors time and money by getting them the info they need quickly and efficiently, delivering concise summaries and hard-hitting analysis of the day's top market-moving news. FINSUM is written by an experienced team with a background in bond trading and equity research at top investment banks.

    Learn More