JPMorgan experts warn of market concerns and offer insights on global equities.
Bob Michele, Chief Investment Officer for JPMorgan's asset management arm, sees worrying parallels between the current market calm and the deceptive lull during the 2008 financial crisis. Michele believes that the next few months are merely a calm before the storm and that the economy will probably tip into recession by the end of the year. He points out that the Fed's moves since March 2022 are its most aggressive series of rate increases in four decades, and other signs pointing to an economic slowdown include tightening credit, rising unemployment filings, shortening vendor delivery times, the inverted yield curve, and falling commodities values. Michele believes that the pain is likely to be greatest in three areas of the economy: Regional banks, commercial real estate, and junk-rated corporate borrowers.