Dimon compared the current situation to the 2005-07 era, just before the 2008 crash. He said that the current situation is almost the same. “The rising tide lifts all boats. Everyone was making a lot of money…I don’t know how long it is going to be great for everybody,” he added while speaking at an event on Monday, as quoted by CNN.
The veteran banker said people are doing dumb things to make money in turbulent markets to claim they are “winning in the markets business”. Without mentioning names, he was referring to the financial institutions making risky bets to earn good profits, while stock markets are reacting to developments like tariffs and artificial intelligence.
“My anxiety is high over it,” he said, as quoted by the report, adding that there will be a cycle one day, although he is not sure of what confluence of events can lead to that cycle. He added that he is not assuaged by the fact that asset prices are high, saying that this actually adds to the risk.
Dimon also commented on the ongoing frenzy around artificial intelligence. He explained industries like newspapers, utilities and phone companies seemed stable until the issues during the 2008 collapse. “This time around, it might be software because of AI…There are moving tectonic plates underneath it, which causes the industry to be challenged,” he said.
Notably, worries about AI-led disruption have led to a massive global tech selloff. The selloff began after AI startup Anthropic launched plug-ins for its Claude Cowork agent, which could automate tasks across legal, sales, marketing and data analysis departments.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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