Stocks could fall by as much as 40 percent over the next two to three years, JPMorgan Chase co-president Daniel Pinto revealed as he issued a major warning to traders across the globe. A plunge of this scale would effectively erase the recent gains for US stocks – the S&P 500 has increased by 38 percent over the past two years, while the Dow Jones Industrial has rallied a staggering 45 percent over the same period.
As investors worry about the consequences of central banks raising interest rates and rising inflation, the comments from a leader of one of the main US banking giants will not assuage any fears. In an interview with Bloomberg Television, Mr Pinto warned: “We know there will be a correction at some point – it could be a deep correction. “It could be between 20 percent to 40 percent depending on the valuation.” READ MORE