asset costs and AI | EUROtoday

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JPMorgan Chief Executive Jamie Dimon stated he was involved concerning the U.S. economic system, citing a aggressive atmosphere within the banking sector that reminded him of the years earlier than the 2008 disaster.

Even as economists tout the Trump administration’s tax and deregulatory insurance policies as an element that can spur financial development this 12 months, Dimon stated throughout an annual investor replace that his tendency is to think about what might go incorrect when expectations are excessive.

“My opinion is that people are getting a little reassured that these high asset prices and high volumes are real and that we won’t have any problems,” stated Dimon, who was wearing black and wore a brace on one hand.

Dimon “anxious” about systemic dangers

Inevitably, Dimon stated, the enterprise cycle will change path. “Someday there might be a cycle… I do not know what confluence of occasions will trigger that cycle. I’m very anxious about it,” Dimon said. “I’m not comforted by the fact that asset prices are high. In fact, I think it increases the risk.”

While fears about how synthetic intelligence fashions from Anthropic and OpenAI might revolutionize myriad industries, significantly software program corporations, have roiled markets in current weeks, the broader S&P 500 index just isn’t removed from its all-time file excessive.

Doubts concerning the stability of the credit score sector

At the identical time, considerations about lending to software program corporations, on the coronary heart of worries about synthetic intelligence, have hit personal lenders arduous after Blue Owl spooked markets final week by saying it needed to promote property to fulfill traders clamoring to exit one among its funds.