Warning of Possible Correction in U.S. Stock Market
BOE Also Warns: "AI Company Valuations Excessive"
Jamie Dimon, CEO of JPMorgan Chase, the largest bank in the United States, has warned that the U.S. stock market could face a significant correction in the future.
In an interview with the BBC on October 9 (local time), CEO Dimon said he is "much more worried than others" about the possibility of a severe correction in the U.S. stock market that could occur within the next six months to two years.
He cited risk factors such as the geopolitical environment, fiscal spending, and global rearmament, pointing out that numerous elements are creating an atmosphere of uncertainty. He added, "All of this leads to countless problems for which we do not know the solutions," and, "Therefore, the level of uncertainty in most people's minds should be higher than what I would call normal."
He also stated, "In my view, artificial intelligence (AI) is real, and when you look at the total impact, just as cars and televisions delivered results, AI will also deliver results in aggregate." However, he pointed out, "Most people involved in those fields (cars and televisions) did not do well."
He went on to add that some of the funds being invested in AI will "probably be lost."
Previously, the Bank of England (BOE), the central bank of the United Kingdom, warned of the risk of a "sharp correction," noting that the valuations of AI companies appear to be "excessively inflated," drawing a comparison to the dot-com crash of the late 1990s.
The Guardian recently reported that, according to a study by MIT, 95% of all companies have not generated any profit from investments in generative AI, which is shaking confidence in the AI boom.
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