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Jamie Dimon, Chairman and Chief Executive officer (CEO) of JPMorgan, warned that investors are currently underestimating the risks facing the global economy, saying that he would not buy stocks or long-dated US Treasurys at current prices.
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Dimon pointed out that markets aren’t yet fully accounting for a growing list of geopolitical and fiscal threats, citing the Russia-Ukraine war, the situation in the Middle East, and tense US-China relations.
He remained cautious about the recent AI investment boom, comparing it to the early dot-com bubble.
Dimon acknowledged that the global economy has become more resilient in recent decades with lower energy dependence, but remains vigilant about the possibility of a sudden economic infliction.
“You may need more straws in the camel’s back to cause that tipping point,” he said. “Even this current war starting up again, maybe that’s not enough to do it.”
He believes that the high US fiscal deficit may lead to further increases in interest rates.
Speaking of the AI investment frenzy, Dimon emphasized that actual returns may not meet market expectations.
Such comments contrast with investors’ recent tendency to downplay past wars, tariffs and other shocks.
Meanwhile, JPMorgan and other major Wall Street banks reported strong quarterly results last week.
