Head of largest US bank warns of risk of American stock market crash

The chance of the US stock market crashing is far greater than many financiers believe, the head of America’s largest bank has said. Jamie Dimon, who is the chair and chief executive of the giant Wall Street bank JPMorgan Chase, said he was “far more worried than others” about a serious market correction, which he predicted could come in the next six months to two years.

“I would give it a higher probability than I think is probably priced in the market and by others,” he told the BBC. “So if the market’s pricing in 10%, I would say it is more like 30%.” Dimon added there were a “lot of things out there” creating an atmosphere of uncertainty, pointing to risks including the geopolitical environment, fiscal spending and the remilitarisation of the world.

“All these things cause a lot of issues that we don’t know how to answer,” he said. “So I say the level of uncertainty should be higher in most people’s minds than what I would call normal.” The comments are the latest in a string of warnings that stock markets may be due a correction. (Read More)