JP Morgan Chase chief executive Jamie Dimon has warned that US equities face a greater risk of a steep correction than investors currently expect, telling the BBC he is “far more worried than others” about an eventual downturn over the next six months to two years.
Dimon said markets appeared overheated, fuelled by AI optimism and loose fiscal spending, while global uncertainty from geopolitical tensions and re-armament added to risks. “The level of uncertainty should be higher in most people’s minds than normal,” he said.
Although he believes artificial intelligence will ultimately deliver lasting gains, Dimon cautioned that many AI-related investments will “probably be lost,” drawing parallels with the dot-com boom and bust.
On policy and politics, Dimon said he remained “a little worried” about inflation but expected the Federal Reserve to stay independent despite Trump’s repeated attacks on Chair Jerome Powell. He described the US as “a little less reliable” on the world stage, citing global tension and military readiness as new priorities: “We should be stockpiling bullets, guns and bombs.”
Dimon also hinted at progress toward easing US tariffs on India, saying he had spoken with Trump administration officials who were keen to bring India “closer” and roll back penalties linked to its oil trade with Russia.
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Dimon spoke with the BBC a day or so ago, but his comments have caught more interest in recent hours as stocks slid a little. If you are ever in any doubt that stock market moves tend to drive what is seen as intersting in the news, don’t be.
This article was written by Eamonn Sheridan at investinglive.com.