10% market drop is likely-JPMorgan’s executive officer for assets management

"U.S. stocks are likely to fall by a little or tumble a lot. Just nothing in between," Mary Callahan Erdoes of JPMorgan Chase & Co. (JPM), said at an event of Institute of International Finance in Washington.
Erdoes adds,“It would be very healthy, but we’re not going to get a 10 percent correction.”
“We’re going to get a 2 percent correction with a lot of cash coming in on the way down, or we’re going to get a real correction, and it’s going to be a lot worse than 10 percent.”

The Standard & Poor’s 500 (SPX) Index fell 3.1 percent for the week, the most since May 2012, and has declined 5.6 percent from September.

“It’s such a psychological game that long-term investors don’t play,” Erdoes said.

With $1.71 trillion in assets under management and being a leader of it, she is concerned that as more companies shift to defined-contribution programs from defined-benefit pension plans, business units- individual people will make investment decisions based on emotion and that will cause decline.