Jamie Dimon, CEO of the world’s most valuable bank and architect of the “fortress balance sheet” that helped JPMorgan emerge unscathed from the 2008 financial crisis, believes investors are downplaying the risk of a major market correction—one that could slash stocks by about a third.
Dimon, in his most recent comments, said the timing of the end of the rally is difficult to predict. It’s possible a stock market downturn could hit in six months. Yet, the stock market rally could also hold on for another two years, he noted.
“Bull markets could go on a lot longer than you think,” he said.
The JPMorgan CEO said he has studied other periods of market euphoria like the dot-com crash, and found the only way to get a sense of when a bubble is coming to an end is through high valuations, otherwise: “It’s really impossible to tell the burst,” he said.
Dimon added some of the investment in AI will “probably” be wasted money, and some investors in the technology may end up worse off.
“AI is real. AI in total will pay off, just like cars in total paid off, TV in total paid off,” Dimon said. “But most people involved in it didn’t do well.”
