Jamie Dimon, the chair and chief executive of JPMorgan Chase, has issued a stark warning that the risk of a US stock market crash is far higher than many financiers believe. In an interview with the BBC, Dimon said he was 'far more worried than others' about a serious market correction, which he predicted could occur within the next six months to two years.
'I would give it a higher probability than I think is probably priced in the market and by others,' Dimon said. 'So if the market's pricing in 10%, I would say it is more like 30%.' He cited a range of risks contributing to uncertainty, including geopolitical tensions, fiscal spending, and the remilitarisation of the world.
Dimon's comments come amid a series of warnings from financial leaders. On Wednesday, International Monetary Fund chief Kristalina Georgieva told an audience at the Milken Institute in Washington that the global economy had shown resilience but warned: 'Buckle up: uncertainty is the new normal.' She added that global resilience had not yet been fully tested.
Separately, the Bank of England has flagged a growing risk of a 'sudden correction' in global markets, partly driven by high valuations of artificial intelligence companies. Dimon acknowledged that some AI investments would 'probably be lost', but said AI would ultimately pay off, much like cars and televisions did.
