The News Radar

Timely links to external news and articles, usually valuation related, with occasional commentary.

Originally posted Thursday, 13 October 2022
‘Soft Landing’ Is Unlikely for US Economy, JPMorgan’s Dimon Says

Jamie Dimon said the Federal Reserve probably can’t cool the red-hot economy without bringing on a recession.

“I don’t know if it could be a soft landing -- I don’t think so, but it might,” the JPMorgan Chase & Co. chief executive officer said at an industry conference in Washington Thursday, adding that the alternatives would be a mild or a severe recession. “In a tough recession, you could expect the market to go down another 20% to 30%.”

Valuation models easily support another 30% drop from here, particularly if rates keep increasing.