JPMorgan Predicts the Next Financial Crisis Will Strike in 2020
- Model sees 20% U.S. stock slump, credit spreads 115bps wider
- Loss of liquidity in financial markets could worsen results
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How bad will the next crisis be? JPMorgan Chase & Co. has an idea.
A decade after the collapse of Lehman Brothers sparked a plunge in markets and a raft of emergency measures, strategists at the bank have created a model aimed at gauging the timing and severity of the next financial crisis. And they reckon investors should pencil it in for 2020.