Jamie Dimon, the CEO of US' largest bank by assets, JPMorgan Chase, said in an interview to CNBC that it is a mistake to assume that everything is hunky-dory and that the recent rally in the stock markets has lulled investors of the potential risks that lie ahead over the next two years.
“When stock markets are up, it’s kind of like this little drug we all feel like it’s just great. But remember, we’ve had so much fiscal monetary stimulation, so I’m a little more on the cautious side,” Dimon told CNBC on the sidelines of the World Economic Forum in Davos.
US markets had a strong rebound from their 2023 lows with the S&P 500 gaining 24% and the Nasdaq gaining over 40% in the year gone by. The S&P 500 is also within touching distance of its all-time high.
Dimon listed out the "very powerful forces" that will be affecting the global economy in 2024 and 2025. In that list, he highlighted the Russia-Ukraine war, the war in Gaza, the Red Sea conflict and the Federal Reserve's quantitative tightening. "Which (Fed tightening) I still question if we understand exactly how it works," he said.
The JPMorgan Chase CEO was also among the first to warn investors of an "economic hurricane" ahead due to the Fed tightening and the Russia-Ukraine war.
First Published: Jan 18, 2024 7:17 AM IST
