Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., US, on Thursday, Sept. 22, 2022. Lawmakers yesterday seized on recent political tensions and hot-button social issues in a hearing with the chief executive officers of America's largest retail banks asking them on everything from the escalation of the Ukraine conflict and racial equity to fossil-fuel financing.
Locked
Jamie Dimon’s S&P 500 bear market: Brutal far from unimaginable
At the low last month, the S&P 500 was trading at 18 times earnings, a multiple that is above trough valuations seen in all previous 11 bear cycles.
By Lu Wang and Peyton Forte
(Bloomberg) — Jamie Dimon says don't be surprised if the S&P 500 loses another one-fifth of its value. While such a plunge would fray trader nerves and stress retirement accounts, history shows it wouldn't require any major departures from past precedents to occur.
Judged by valuation and its impact on long-term returns, the JPMorgan Chase chief executive officer's "easy 20%" tumble, mentioned in a CNBC interview yesterday, would result in a bear market that is in many regards normal. A decline roughly to 2,900 on the S&P 500 would leave the gauge 39% below its January high, a notable collapse but one that pales next to both the dot-com crash and global financial crisis.
___STEADY_PAYWALL___