JPMorgan's Jamie Dimon is ‘far more worried' about potential stock market fall than most of Wall Street

Core Viewpoint - JPMorgan CEO Jamie Dimon expresses significant concern over the likelihood of a US stock market correction, predicting a potential drop of at least 10% within the next six months to two years, which he believes is underestimated by the market [1][5]. Group 1: Market Concerns - Dimon suggests that the probability of a market correction is around 30%, much higher than the 10% currently priced in by the market [2]. - He cites various factors contributing to market uncertainty, including geopolitical tensions, fiscal spending, and increasingly aggressive government stances globally [2]. Group 2: Global Security and Risks - Dimon emphasizes the need for preparedness in a more dangerous world, referencing a shift in focus towards global security issues [3]. - He warns that the risks from inflation remain, and the full impact of previous tariffs has yet to be realized [4]. Group 3: Economic Outlook - The International Monetary Fund's managing director, Kristalina Georgieva, echoes Dimon's concerns, stating that global resilience has not been fully tested and that uncertainty is the new normal [6][8]. - Experts from the Bank of England have noted a growing risk of a sudden correction in global markets, particularly due to inflated valuations in AI technology companies [6][7]. Group 4: AI Market Valuation - Dimon agrees with the assessment that equity market valuations, especially in the AI sector, appear stretched, indicating potential losses for investors in this area [7]. - He compares the current AI investment landscape to past technological advancements, suggesting that while AI will ultimately pay off, many investors may not see returns [7].