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Jamie Dimon, president and CEO, chairman and CEO of JPMorgan Chase, speaking on CNBC’s Squawk Box at the annual meeting of the World Economic Forum in Davos, Switzerland on January 17, 2024.
Adam Galitsky | CNBC
JPMorgan Chase General director Jamie Dimon on Wednesday called the U.S. stock market overvalued and said he was feeling more cautious than others in the business world about the risks of deficit spending, inflation and geopolitical turmoil.
“Asset prices are somewhat inflated by any measure. They’re in the top 10% or 15%” of ratings historically, Dimon told CNBC’s Andrew Ross Sorkin. World Economic Forum in Davos, Switzerland.
Dimon said he was talking about the US stock market, which is in the midst of a multi-year rally. In 2023 and 2024, the S&P 500 is up more than 20% annually, the first time in more than 25 years. Last year, Diman even called the shares his own own company expensive.
But Dimon also noted that some parts of the bond market, such as sovereign debt, are “at an all-time high.”
“So, yes, they’re elevated, and you need pretty good results to justify those prices,” Dimon said. “Having strategies that promote growth helps that happen, but there are downsides, and they can surprise you.”
Dimon, 68, is one of the most respected executives in finance after he built JPMorgan into the largest U.S. bank by many measures, including assets and market valuation.
He expressed caution from 2022 when he said “hurricane” aimed at the U.S. economy. However, that storm has yet to materialize as the U.S. has outperformed expectations in recent years and the election of Donald Trump in November has raised hopes for what a pro-growth administration will do.
“I have a little more caution on a lot of subjects,” Dimon said Wednesday. “I’m a little cautious about deficit spending; it’s a global problem, not just an American one,” he said. “And the related (question) ‘Will inflation go away?’ I’m not so sure.’
The rising tide of global conflict, including the war in Ukraine, tensions in the Middle East and rising threats from China, “just made me very concerned about how it’s going to affect our world over the next 100 years,” Dimon said.
Diman expressed his support in a wide-ranging interview tariffs on U.S. imports as he bolsters national security, and said he’s also a tech entrepreneur Elon Musk smoothed out previously controversial relations. Dimon also said he has no intention of running for office in 2028.
