JP Morgan Chase Chief Executive Officer Jamie Dimon has warned that U.S. stock markets face a greater risk of a sharp downturn than investors currently anticipate.
Speaking to the BBC during a visit to Bournemouth, Dimon said he was “far more worried than others” about a serious market correction that could occur within the next six months to two years. He pointed to an unusual combination of risks from geopolitical tensions to heavy fiscal spending and the rearmament of major powers that, he said, had created “an atmosphere of uncertainty” not fully reflected in market sentiment.
“The level of uncertainty should be higher in most people’s minds than what I would call normal,” Dimon said, cautioning that markets may be underpricing risk.
The comments come amid a surge in technology stocks, particularly those linked to artificial intelligence. The Bank of England recently compared the enthusiasm around AI to the dot-com boom of the late 1990s, warning that valuations “appear stretched” and could face a “sharp correction.”
Dimon agreed that while AI would ultimately pay off, many investors could lose money in the process. “AI is real, and in total it will pay off — just like cars and TVs did but most people involved didn’t do well,” he said.
During his visit, Dimon announced a £350 million expansion of JP Morgan’s Bournemouth campus and a £3.5 million philanthropic fund for local nonprofits. U.K. Chancellor Rachel Reeves welcomed the investment, calling it “fantastic news for the local economy and the people who live here.”
Beyond financial markets, Dimon also raised concerns about global security, warning that the world is “a much more dangerous place” and calling for greater investment in defense. “People talk about stockpiling crypto,” he said. “I always say we should be stockpiling bullets, guns and bombs.”
He added that the U.S. would need to strengthen its preparedness, noting that his recent letter to shareholders warned America could run out of missiles in just seven days during a potential conflict in the South China Sea.
On U.S. monetary policy, Dimon expressed confidence in the independence of the Federal Reserve despite repeated attacks from former President Donald Trump on Fed Chair Jerome Powell. “Central bank independence is important,” Dimon said, though he added he was willing to take Trump “at his word” that he would not interfere if re-elected.
Dimon also acknowledged that the U.S. had become “a little less reliable” as a global partner, but said some of the Trump administration’s policies had spurred Europe to act on defense spending and competitiveness.
He further noted that trade relations with India could improve soon, revealing that discussions were underway to roll back tariffs imposed on India for its trade with Russia. “I’ve spoken to several Trump officials who say they want to do that, and I’ve been told they are going to do that,” he said.
As one of the world’s most influential bankers, Dimon has often been mentioned as a possible candidate for U.S. Treasury Secretary or even the presidency. Asked about political ambitions, he brushed off the speculation. “It’s not on the cards,” he said. “If you gave me the presidency, I’d take it, I think I’d do a good job,” he added with a laugh.
