Jamie Dimon's recent letter raises concerns about stagflation threatening the economy and warns that stock market troubles may persist. Meanwhile, the IPO market faces significant challenges, with analysts expecting only about 150 public offerings this year due to a historic stock market sell-off linked to Donald Trump's tariffs. This downturn reinforces the idea that momentum for a significant IPO comeback may have been misguided and is further restricting average Americans' access to investment opportunities in high-growth companies, thus exacerbating economic disparities.
"All signs were pointing to 2025 as the year when we would finally get some IPOs," said Matt Kennedy, a senior strategist at Renaissance Capital. But a historic stock market sell-off, precipitated by Donald Trump's tariffs, has thrown cold water on those hopes.
As long as IPOs remain stagnant, average Americans have few ways to share in Silicon Valley's wealth. A slowdown in the IPO market limits the opportunities for mom-and-pop investors to directly take stakes in high-growth companies.
"Yet again, we are sequestering the majority of the upside of our prosperity to the private markets that consist mostly of 0.1 percenters and institutional investors," Scott Galloway, an entrepreneur.
IPO analysts at Renaissance now estimate that as few as 150 deals could be made this year, making 2025 the fourth straight down year for IPOs.
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