Jamie Dimon says markets underestimate risks and he wouldn't buy stocks or Treasurys at current prices - CNBC

What the report says

CNBC reported that JPMorgan Chase CEO Jamie Dimon warned investors may be too relaxed about risks that could disrupt financial markets, including wars in Ukraine and the Middle East, U.S.-China tensions, tariffs, rising defense spending and large government deficits. In an interview with Wilfred Frost released late Monday, Dimon said he would not buy the broad stock market or long-dated U.S. Treasurys at current prices.

Dimon told CNBC that some dangers may already be reflected in markets, but investors cannot know how events will unfold. His caution comes as markets have continued to rise despite geopolitical shocks. CNBC noted the S&P 500 has gained nearly 10% this year, supported by consumer spending, easing inflation and enthusiasm for artificial intelligence-related investments.

On government debt, Dimon said persistent U.S. deficits could eventually push rates higher if bond investors demand more compensation to finance borrowing. He said he personally would not buy long-term Treasurys and suggested the 10-year yield should probably be around 4% to 4.5% even if inflation returns to the Federal Reserve’s 2% target.

Dimon was also cautious on equities, saying he might consider a specific company with strong investment prospects but would not buy the overall market at present valuations. On artificial intelligence, he compared today’s investment surge to the early internet era: the technology may ultimately pay off, but not necessarily on the expected timeline or through today’s most prominent companies.