"JPMorgan Chase CEO Jamie Dimon explained why he was more worried than others that a U.S. stock market crash could be imminent. The comments came from a BBC interview published on Thursday. During the conversation, Dimon broke down why his level of concern over various factors including inflation and the geopolitical climate is greater than what's already been priced into the market."
"The amount of uncertainty and I put geopolitics in that category, fiscal spending in that category, politics in that category, the remilitarization of the world in that category all of these things coincide, Dimon continued. A lot of issues that we don't know how they're gonna sort out. So the level of uncertainty should be higher in most people's minds than what I call normal."
Jamie Dimon assigns a substantially higher probability to a severe U.S. stock market correction than current market pricing, estimating about 30% versus roughly 10%. No specific timing was predicted, with a possible window ranging from six months to two years. Key drivers of elevated risk include inflation, geopolitics, fiscal spending, political developments, and the remilitarization of the world, which are coinciding and increasing uncertainty. The International Monetary Fund also characterizes heightened uncertainty as the new normal and warns of mounting global economic risks despite recent resilience. Market pricing may understate the likelihood of a significant downturn given these combined factors.
Read at www.mediaite.com
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