JP Morgan executive: 2026 may be a "bumper year" for mergers and acquisitions, but market bubbles are a cause for concern.

A senior executive from JPMorgan Chase gave a mixed assessment of the M&A market in 2026: this year may be a "bumper year" for M&A transactions, but global financial markets may already be in a state of overvaluation. At the World Economic Forum in Davos, Filippo Gori, Co-President of Global Investment Banking at JPMorgan Chase, said in an interview: "Clients are currently observing the situation. They are aware that financing costs are still at extremely low levels, and there are indeed a large number of deal projects that should have been completed last year but are still pending." However, while optimistic about the prospects of the deal market, Gori also issued a warning: global market valuations may already be too high, and any further escalation of geopolitical conflicts could trigger an economic slowdown. "I believe that the current market pricing of various assets somewhat carries an idealized tendency of 'all will be well,' " Gori said. "As if no matter what happens, it will eventually turn out well. This is what concerns me." In addition, Gori also expressed concerns about the risks of potential inflation rebound and the end of the loose credit market cycle. He pointed out: "Geopolitical turbulence has been ongoing for a long time, with situations alternating between easing and tension, and market participants seem to have become accustomed to it. However, it is obvious that once conflicts escalate, it could trigger an economic downturn." European Tour Insights Having been transferred to New York last year, Gori recently visited several European countries to meet with clients. Through these interactions, he found that most companies and investors are more focused on daily operations and pay relatively little attention to the broader geopolitical environment. Despite President Trump's escalating threats and remarks against several European countries opposed to the US acquisition of Greenland, Gori stated that most clients are largely unperturbed by this. "Companies just want to focus on their operations and do their own thing, without getting too caught up in tariff issues," Gori said. Tariff issues "may once again become a focus, but I can feel that overall market sentiment is relatively optimistic, and people generally think 'it's already happened, so let's focus on the present'."