Dimon Warns Markets Resemble Pre-Financial Crisis Era

JPMorgan Chase CEO Jamie Dimon said that current market conditions resemble those leading up to the global financial crisis, David Hollerith reported for Yahoo Finance.

Dimon’s remarks come amid a turbulent period in markets. (Photo: Lauren Hurley / No 10 Downing Street) 

“Unfortunately, we did see this in ’05, ’06, ’07 — almost the same thing,” Dimon said at the firm’s annual investor day in New York.

“The rising tide lifting all boats, everyone was making a lot of money, people leveraging to the hilt. The sky was the limit.”

He added: “My own view is people are getting a little comfortable that this is real — these high asset prices and high volumes — and that we won’t have any kind of problem whatsoever. So we’re quite cautious about that.”

Dimon’s remarks come amid a turbulent period in markets, as investors sell stocks across industries over concerns that artificial intelligence could disrupt core business models.

In finance, the strain has been particularly evident in private credit markets.

“All of our main competitors are back,” Dimon said. “It’s good for the world, et cetera. I don’t know how long it’s going to be great for everybody. I see a couple of people doing some dumb things.”