Damon said: "If you make a list of all the previous crises, you will find that although we can predict the crisis, we can never predict where it started. So I will be very cautious now."
Jamie Dimon, CEO of JPMorgan Chase, said that "severe headwinds" are likely to push the US and global economies into recession by the middle of next year.
Dimon said in an interview with CNBC the next night (Monday, October 10): "These are very, very serious things. This headwind has put Europe into recession. They are likely to continue to put pressure on the U.S. and the global economy, so that the U.S. economy will fall into recession within six to nine months."
Dimon said: "Although the US economy seems to be performing well at present, a series of economic indicators and global problems, such as soaring inflation, higher than expected interest rates, the end of quantitative easing by the Federal Reserve, and the Russian Ukrainian war, are ringing the economic alarm bell."
Dimon believes that in the coming days, people may see more cracks and more panic in the credit market. This crack or panic may be a listed fund (ETF) or a country. It may even be something that people have never thought of.
He said: "If you make a list of all the crises that have occurred before, you will find that although we can predict that the crisis will occur, we can never predict where it started. So now I will be very cautious."
Dimon believes that the S&P 500 index may continue to fall "for a long time", or even "easily" by 20%. The index has fallen nearly 25% this year. However, the next 20% decline will be "more painful" than the previous decline. A further 100 basis points increase in interest rates would be more painful than the first 100 basis points increase before.
