JPMorgan says nation is in a recession
So what are we to make out of this? Is their interpretation of a recession close to our.
To me as a Realtor is would make sense to anticipate the worst is around the corner.
Every day I notice the price adjustment in my area of influence , which mostly is Chicago arew, the loop, West Town , North Lake front and South Lake front.
For instance, a very modern town home in a popular area of Wicker Park, originally was priced to sell @ $699.000, now after over 120 days on the market the price change has been made to $549.000 , thats about $150.000. I think that slowly the public in general is realizing that 20-30% profit on a property in less then 2 years is out of this world, and is exactly what created this mess in the first place.
NEW YORK (AP) -- The U.S. economy is two months into a recession, according to a research note released Friday by JPMorgan Chase & Co.
JPMorgan (JPM, Fortune 500) anticipates the current recession remaining short, unless there is an "abrupt change in corporate behavior."
In a short recession, the bottom occurs at about five months, Thomas Lee an analyst with JPMorgan wrote in a research note. Lee said during typical "short" recessions, equity markets gain about 12% in the year following the bottom.
Lee said if the recession lasts more than 12 months, stocks are likely to have additional downside. Only eight of the 22 recessions since 1900 have lasted longer than a year, Lee added.
JPMorgan originally estimated the Standard & Poor's 500 index would rise to 1,590 during the year. It also did not predict a recession, instead saying the economy would face a period of "slow growth." With the revision in the economic outlook to a recession, JPMorgan now estimates the S&P 500 will bottom out in May before rising toward 1,450 by the end of the year.
