The general director of JP Morgan - James Diamond is preparing for an economic hurricane and advise investors to act as well.

JP Morgan is the largest bank on the planet, and James Diamond is an authoritative specialist whose opinion the investment community is listened to.

We remember that on almost all stock sites, the shares have significantly decreased. Basically, the fault was high inflation, the beginning of the growth of the US Federal Reserve and the tightening of monetary policy.

Recently, we even saw the transition to optimism in the dynamics of stock indices in the appearance of forecasts for curbing inflation. But against the backdrop of such optimism, James Diamond broke the hope that the bottom in the markets has already been achieved.

Now it seems to be sunny, things are going well. Everyone thinks that the Fed to deal with this, but the hurricane is already on the road and is approaching us - James Diamon.

Is Daimon right?

James Diamon is worried about 2 factors:

💥FRS will cancel their programs with an emergency purchase of bonds and reduce its balance. Quantitative toughening will soon begin and will increase to $ 95 billion per month.

And central banks have no choice, since there is too much liquidity in the system. They must remove part of the liquidity in order to stop speculation, reduce housing prices and assessment of assets in the stock market.

💥 Susy in Ukraine and its influence on goods. Diamond sees a rise in prices and focuses on the fact that in this regard, there are prerequisites for the further growth of inflation in the United States (and not only in the USA).

So the economic hurricane is not empty words, but a very real prospect.

Daimon said: "I do not know what the consequences of this are, but I am ready, at least, for great volatility."

Let me remind you that in May, JP Morgan experts reduced the forecast of US economy by the 2nd half of 2022 (2.4%).

They are sure that the current and future decrease in the American stock market, growth in loans and strengthening the dollar, will negatively affect the American economy.

The stock market really listened to the head of JP Morgan. After his words about the impending economic hurricane, the indices really fell and continued to be under pressure.

Increasingly, authoritative leaders in the investment industry are expressed for further reducing the value of stock assets.

But, and it only pleases me, because the lower the cost of good shares, the better. Buying for sale is much more effective.

For today, thanks for your attention!

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