JPMorgan Warns of Next "Lehman Moment"

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Mark Melin
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Updated on

A new JPMorgan Chase & Co. (NYSE:JPM) research note says that markets may treat the Ukrainian situation “as a Lehman-style shock.” The research note, reviewed by ValueWalk, said that while there are “fundamental differences between the current situation and the 2008/09 crisis,” if the market did experience such a shock it could lead to nearly a 50 percent loss in value in stock market index investments.  If the market were to be analyzed based on a forward price / earnings ratio multiple, investors might expect nearly a 40 percent decline. What is a Lehman Moment Although the brief research note…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.