Banker’s comments come as investors fret about rising rates
He says there will be a markets correction ‘at some point’
JPMorgan Chase & Co. executive Daniel Pinto warned equity markets could fall as much as 40 percent in the next two to three years.
JPMorgan Chief Executive Officer Jamie Dimon echoed Pinto’s concerns about tariffs.
“If it continues and it gets worse, then it will hurt growth, it will hurt investment,” Dimon said in a separate interview with Bloomberg Television on Thursday. “It could offset some of the very huge positives we’ve had from competitive tax reform.”
“I think we’re ok for a while,” Dimon added. “One day we will have a recession. I don’t think it will be this year. Could it be late 2019?”
Last month, Pinto said trading revenue across his firm was on pace to increase by “mid to high single digits” in the first three months of 2018, with a spike in market volatility poised to help Wall Street firms break a three-quarter slump in that business.
Pinto was promoted to co-president this year. The banker has advanced through the trading side of JPMorgan and has helped that business climb to the top of Wall Street. The firm was also the second-biggest by investment-banking fees last year, according to Bloomberg Intelligence.
He’s spent his entire 35-year career at JPMorgan and its predecessors. Based in London, he was promoted to sole head of his unit in 2014, when Michael Cavanagh left.