JPMorgan Asset Management’s Bob Michele said the selloff in markets is a message to President Donald Trump’s administration to take action to restore calm as officials did after Liberation Day tariffs rattled investors last year.
“Things are a bit chaotic and the markets do feel a bit panicked,” said Michele, chief investment officer and global head of fixed income in an interview with Bloomberg. “The market had a fit in April and then they backed off of a lot of things and then calm ensued. We need to hear some of the same kinds of things.”
The S&P 500 erased its 2026 gains on Tuesday and bonds and the dollar fell after Trump threatened tariffs on multiple European countries who have opposed his pressure to take over Greenland. The tumult came after Japan’s 40-year bond yield hit a record high on concerns that a snap election called by Prime Minister Sanae Takaichi might pave the way for looser government spending that exacerbates the nation’s finances.
The 40-year bond rebounded on Wednesday after Finance Minister Satsuki Katayama called for calm among market participants. Trump is expected to arrive in Davos on Wednesday.
The market had a fit in April and then they backed off of a lot of things and then calm ensued. We need to hear some of the same kinds of things.
Michele said global fixed-income buyers have no good alternatives to US debt markets, including government and corporates, given their depth and liquidity. Bond markets in Japan have become “unanchored” after the election call ignited concerns about fiscal surplus, he added.
“We thought the president was going to Davos to talk about housing and credit card affordability. Suddenly now it’s become about Greenland affordability,” said Michele.
