Are we really going into a recession? CEO Bank of America’s Thoughts

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The stock market lost about 500 points just yesterday with Dow Jones Industrial Trading around 438% Morgan Stanley may have to lay off some of its workers, We are getting similar news from Goldman Sachs. Jamie Dimon CEO of JP Morgan explained that inflation is eroding consumer wealth and we could be tipping towards a recession next year.

Jamie explained this on Tuesday o n an interview with CNBC’s Squawk Box. He explains that the consumer companies are not doing so badly but in the future things aren’t looking so good. We are currently using up 10% more than we did in 2021 and there is an excess of $1.5 trillion in excess savings but he thinks this amount will be used up by the middle of next year.

These speculations of a recession have been flying around for some time now but Brian Thomas Moynihan the CEO of the bank of America had other thoughts on where the stock market was headed. He seems optimistic about the direction of the market despite all the FUD being pushed out.

When he spoke on Fox Business, he explained that he has been working with his team of market researchers and they tell him that the first part of next year will wall about 1 or 2% into the negative in the first part of next year. He says the recession will be a shallow one. If the assumptions people had about the market in spring was that right now there should be a serious downturn but we are not seeing that and people are making the same projections about the market now.

He explained that the unemployment level is 3.6% with 200 thousand jobs formed and the ages of the average American still growing though it's not a good sign for the inflation side of things it shows just how much the American Consumer is willing to spend and the rates aren’t dropping significantly as everyone wants to think. The numbers are not as high as many people think and the external factors like the Russia-Ukraine war are one that still threatens to send the economy spiralling down but I read a post by @taskmaster about how Russia's unavailability in the market is not going to have the effect everyone thinks it will.

I don’t have stock but think it will be interesting to see how things will play out. What about you, do you think we are really heading towards a recession? Will the market fall below 2%? Do you think Brian Thomas is right or you are more on the side of Jamie Dimon?

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