The chances of the US stock market crashing is far greater than many financiers believe, the head of America\u2019s largest bank has said.<\/p>\n
Jamie Dimon, who is the chair and chief executive of the giant Wall Street bank JPMorgan Chase, said he was \u201cfar more worried than others\u201d about a serious market correction, which he predicted could come in the next six months to two years.<\/p>\n
\u201cI would give it a higher probability than I think is probably priced in the market and by others,\u201d he told the BBC<\/a>. \u201cSo if the market\u2019s pricing in 10%, I would say it is more like 30%.\u201d<\/p>\n Dimon added there were a \u201clot of things out there\u201d creating an atmosphere of uncertainty, pointing to risks including the geopolitical environment, fiscal spending and the remilitarisation of the world.<\/p>\n \u201cAll these things cause a lot of issues that we don\u2019t know how to answer,\u201d he said. \u201cSo I say the level of uncertainty should be higher in most people\u2019s minds than what I would call normal.\u201d<\/p>\n The comments are the latest in a string of warnings that stock markets may be due a correction.<\/p>\n On Wednesday, the head of the International Monetary Fund, Kristalina Georgieva, said the world economy had shown surprising resilience in the face of Donald Trump\u2019s trade war, but issued a stark warning about the mounting risks<\/a>, saying: \u201cBuckle up: uncertainty is the new normal.\u201d<\/p>\n \u201cBefore anyone heaves a big sigh of relief, please hear this: global resilience has not yet been fully tested. And there are worrying signs the test may come,\u201d she told an audience at the Milken Institute in Washington.<\/p>\n Meanwhile, concerns are increasingly being aired that a stock market bubble has been created by high valuations of AI companies<\/a>, with the Bank of England stating on Wednesday that there is a growing risk of a \u201csudden correction\u201d in global markets<\/a>.<\/p>\n skip past newsletter promotion<\/a><\/p>\n Sign up to Business Today<\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n Privacy Notice: Newsletters may contain information about charities, online ads, and content funded by outside parties. If you do not have an account, we will create a guest account for you on theguardian.com<\/a> to send you this newsletter. You can complete full registration at any time. For more information about how we use your data see our Privacy Policy<\/a>. We use Google reCaptcha to protect our website and the Google Privacy Policy<\/a> and Terms of Service<\/a> apply.<\/p>\n after newsletter promotion<\/p>\n Dimon conceded that some of the money being invested in AI would \u201cprobably be lost\u201d.<\/p>\n He added: \u201cThe way I look at it is AI is real; AI in total will pay off \u2013 just like cars in total paid off, and TVs in total paid off, but most people involved in them didn\u2019t do well.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The chances of the US stock market crashing is far greater than many financiers believe, the head of…\n","protected":false},"author":2,"featured_media":200516,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-200515","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/200515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=200515"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/200515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/200516"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=200515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=200515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=200515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}