\n<\/p>\n
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. \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, 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, with the Bank of England stating on Wednesday that there is a growing risk of a \u201csudden correction\u201d in global markets.<\/p>\n
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Sign up to Business Today<\/span><\/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: <\/strong>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 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. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.<\/span><\/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 America\u2019s largest bank has said. 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<\/p>\n","protected":false},"author":1,"featured_media":27015,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[473,3189,1872,64,306,7687,736,5965,1060],"class_list":{"0":"post-27014","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-american","9":"tag-bank","10":"tag-crash","11":"tag-largest","12":"tag-market","13":"tag-morgan","14":"tag-risk","15":"tag-stock","16":"tag-warns"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/27014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27014"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/27014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/27015"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}