JPMorgan’s Michele Warns Mighty Dollar May Trigger Next Crisis

  • Rising greenback could spark upheaval in derivatives market
  • JPMAM CIO is risk-off; cash position near highest in 10 years

Bob Michele

Photographer: Victor J. Blue/Bloomberg

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Bob Michele, the outspoken chief investment officer of J.P. Morgan Asset Management, has a warning: the relentless dollar could forge a path to the next market upheaval.

Michele has been in de-risking mode, sitting on a pile of cash which is near the highest level he has held in 10 years. And he is long the dollar. While a market crisis sparked by the greenback is not his base case, it’s a tail risk that he is monitoring closely.