JPMorgan’s Jamie Dimon Warns Market Correction Could Hit Within 6 Months: ‘I’m Far More Worried…Than Others’

JPMorgan Chase & Co. CEO Jamie Dimon reportedly cautioned that there is a higher risk of a serious decline in U.S. stocks than is currently being reflected in the market.

Dimon warned that a market correction could come in the next six months to two years. "I am far more worried about that than others," he told the BBC in an interview. The veteran CEO added that there were a "lot of things out there" creating an atmosphere of uncertainty, such as the volatile geopolitical environment, fiscal spending, and the remilitarization of the world.

"All these things cause a lot of issues that we don't know how to answer," he said. "So I say the level of uncertainty should be higher in most people's minds than what I would call normal."

Retail sentiment on Stocktwits about the SPDR S&P 500 ETF Trust (SPY) was in the ‘bearish’ territory at the time of writing, while traders were ‘extremely bearish’ about the Invesco QQQ Trust Series 1 (QQQ), which tracks the top 100 Nasdaq companies.

Over the past few years, U.S. stocks have rallied on optimism surrounding artificial intelligence. The S&P 500 and Nasdaq Composite indexes recorded fresh all-time intraday and closing highs on Wednesday. However, some investors fear that the stock market is in an AI bubble, a situation similar to the frenzy surrounding early internet firms in the 1990s, which resulted in the dot-com bubble.

"The way I look at it is AI is real, AI in total will pay off," Dimon reportedly stated. "Just like cars in total paid off, and TVs in total paid off, but most people involved in them didn't do well." The chief of the biggest U.S. bank also noted that some of the money invested in AI will probably be lost.

Views On Trump Administration

Dimon admitted that the U.S. had grown a "little less reliable." However, he said that some of the Trump administration's policies have propelled Europe to address its underinvestment in NATO and its lagging economic competitiveness.

The key Wall Street executive also weighed in on the dispute between the U.S. Federal Reserve and the Trump administration over benchmark interest rates. Trump has frequently criticized Fed Chair Jerome Powell for being “too late” to lower rates, which has raised concerns about the independence of the U.S. central bank.

Dimon reportedly said he thought central bank independence was important, but was willing to take Trump "at his word" that he would not interfere with Fed independence.

He also spoke about the trade dispute between the U.S. and India. Dimon said he wanted to "bring India closer" and he thought that the two sides were close to a deal to cut additional tariffs on India, which were slapped on the South Asian nation for its purchases of Russian crude. "In fact, I've spoken to several of the Trump officials who say they want to do that, and I've been told that they are going to do that," he said.

Also See: Trump Walks Back Plan To Slap Tariffs On Generic Drugs After White House Clash Over Prices, Supply Risks: Report

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on