JPMorgan Warns of Next "Lehman Moment"

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...