Jamie Dimon Warns of Serious Stock Correction as AI Bubble Builds Amid Rising Uncertainty

JPMorgan Chase CEO Jamie Dimon warned that the risk of a significant correction in U.S. stocks is far greater than the market currently reflects, cautioning that it could occur within the next six months to two years.

“I am far more worried about that than others,” Dimon told the BBC in a rare and wide-ranging interview. He pointed to multiple sources of uncertainty — including geopolitical tensions, surging fiscal spending, and the remilitarization of the world — as key risk factors clouding the economic outlook.

“All these things cause a lot of issues that we don’t know how to answer,” he said. “The level of uncertainty should be higher in most people’s minds than what I would call normal.”

Dimon warned that U.S. stock markets may be overheating, driven by exuberant investment in artificial intelligence. The Bank of England recently drew parallels between the current AI boom and the dotcom bubble of the late 1990s, warning that tech valuations “appear stretched” and that there is a rising risk of a “sharp correction.”

“The way I look at it is AI is real — it will pay off,” Dimon said. “Just like cars and TVs ultimately paid off, but most people involved in them didn’t do well. Some of the money being invested in AI will probably be lost.”

Beyond markets, Dimon voiced concern about the world’s growing instability. “People talk about stockpiling things like crypto,” he said. “I always say we should be stockpiling bullets, guns, and bombs. The world’s a much more dangerous place, and I’d rather have safety than not.”

Turning to U.S. monetary policy, Dimon said he remains “a little worried” about inflation but believes the Federal Reserve will stay independent, despite repeated criticism of Fed Chair Jerome Powell by the Trump administration. He added that he would take Trump “at his word” that he will not interfere with the Fed’s independence.

Dimon also acknowledged that the U.S. has become “a little less reliable” on the global stage but suggested that some of Trump’s policies had prompted Europe to strengthen its defense and competitiveness.

On trade, Dimon expressed optimism about a potential breakthrough between the U.S. and India. He said discussions were underway to reduce additional tariffs imposed on India for its continued trade with Russia, particularly its oil purchases. “I’ve spoken to several Trump officials who say they want to do that, and I’ve been told that they are going to do that,” he noted.

Last month, Dimon had already sounded cautious about the U.S. economic outlook, warning that the long-term effects of tariffs, immigration policies, geopolitics, and Trump’s tax and spending measures remain uncertain.