JPMorgan CEO Says Investors Underestimate Market Risks, Advises Against Buying Stocks or Long-Term U.S. Bonds

By: rootdata|2026/07/21 02:01:10

JPMorgan CEO Jamie Dimon stated that investors are underestimating the geopolitical and fiscal risks facing the global economy, and currently, he would not buy into the overall stock market or long-term U.S. Treasuries. He pointed out that the Russia-Ukraine war, conflicts in the Middle East, strained U.S.-China relations, and rising military spending amid expanding government deficits could impact the markets. Although the global economy has become more resilient due to decreased energy dependence, a sudden market reversal could occur. The persistent high fiscal deficit in the U.S. may push up interest rates, leading bond investors to demand higher returns to hold government debt. Dimon believes that even if inflation falls to the Federal Reserve's target level of 2%, the yield on 10-year U.S. Treasuries could range between 4% and 4.5%, limiting the upside potential for long-term Treasury prices. Regarding stocks, he mentioned that he would consider buying individual stocks if they are quality investments, but he would not purchase large-cap stocks at current valuation levels. The S&P 500 index has risen nearly 10% year-to-date. When discussing AI, Dimon compared the current investment frenzy to the early days of the internet, suggesting that massive AI spending may eventually yield returns, but the manner and timing of those returns may not meet expectations. He noted that early internet giants like Yahoo and Netscape eventually faded, while later winners like Google and Facebook emerged.

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