First - like a bunch of lemmings - they rushed one after another last November, to hike their 2022 year-end price targets. And now that the forecast cuts have arrived just three months later, here come the ominous warnings from the investment banks.
JPMorgan’s global head of markets, Troy Rohrbaugh, spoke at the RBC Global Financial Institutions Conference where he said that a lot of the firm's clients are under “extreme stress" as a result of Russia's invasion of Ukraine and the resulting impact it is having on equities and commodities. Rohrbaugh said that the invasion, and the ensuing sanctions from the U.S. and European Union, have been "putting pressure on clients."
“The markets are extremely treacherous at the moment -- there’s a lot of uncertainty. The full ramifications of the current conditions are still uncertain,” he warned. He pointed to the volatility being caused in emerging markets as a result of Russia's invasion of Ukraine.
In a far more striking revelation, Rohrbaugh also said that markets revenue was down 10% this quarter as of Friday, further cautioning that “things have changed a lot since then” and adding the bank wouldn't offer further guidance for the rest of the quarter.
With crypto regulations pending this week in the form of a long-awaited Biden executive order out in two days, he also stated that the bank would let clients help dictate how the firm gets involved with crypto assets. “As our clients become more significant investors in these products, particularly our asset-manager clients, we plan to move with them."
As the quarter nears its end and stocks continue to sink, we would not be surprised to see additional cautious comments from Rohrbaugh and his global banking peers in the coming weeks.