JP Morgan Predicts a 23% Market Crash
Leading global investment bank JP Morgan has predicted a major US stock market crash. The bank remains cautious on the S&P 500 index noting that a 20% downside could be on the cards. JP Morgan’s doomsday stock market prediction comes when BRICS is looking to uproot the dollar and damage the US economy.
The US economy will lead to its own undoing with BRICS having little to bring it down, according to JP Morgan. The banking firm noted that the largest 20 US stocks have surged more than 27% in value year-to-date (YTD). The stocks have outperformed the S&P 500 index which surged nearly 16% YTD. The top 20 US stocks also outpaced the Russell 2000 which is up only 1.73% YTD.
BRICS: US Stock Market Could Crash 23%, Warns JP Morgan
Source: beincrypto.com
JP Morgan has forecasted that a major correction could hit the top 20 US stocks making the markets tank. It warned that the S&P 500 index could crash to a low of 4,200, a drastic decline of 23%. If the US stock market dips 23% according to JP Morgan, BRICS currencies will gain strength in the forex markets.
While the US stock market will look at ways to stop the crash, BRICS could cause further damage by cutting ties with the dollar. JP Morgan’s bearish forecast for the US stock market is bullish for BRICS as it wants to pull the dollar down.
The weakening of the US dollar is a boon to BRICS which wants to push local currencies ahead for trade. JP Morgan has already warned that the US dollar could dip in the next few decades and BRICS could make the most out of the decline.
This article originally appeared on Watcher Guru.
