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 giving too little weight to geopolitical and fiscal dangers, and said he would not buy broad U.S. equities or long-dated Treasury bonds at current levels. In an hourlong interview with Wilfred Frost released late Monday, Dimon cited the wars in Ukraine and the Middle East, U.S.-China tensions, higher defense spending and expanding government deficits as risks that could disrupt markets.

Dimon said it is hard to determine how much of those threats is already reflected in prices, but argued that the market may not be prepared for how events actually unfold. His comments come as investors have largely looked beyond global conflict, tariffs and other shocks. CNBC noted that the S&P 500 has gained nearly 10% this year, supported by consumer spending, easing inflation and enthusiasm around artificial intelligence.

The JPMorgan chief also warned that persistent U.S. budget deficits could eventually push interest rates higher if investors demand greater compensation to hold government debt. He said he personally would not buy long-dated Treasurys and suggested the 10-year yield should likely be around 4% to 4.5% even if inflation returns to the Federal Reserve’s 2% goal.

On stocks, Dimon said he might buy a specific company if it were compelling, but not the overall market at present valuations. He also described the AI investment boom as potentially valuable over time, while cautioning that winners, timing and returns may differ sharply from current expectations, drawing a comparison to the early internet era.