JPMorgan CEO cuts to the chase on stock market danger

JPMorgan Chase CEO Jamie Dimon warned that investors may be underestimating risks despite a strong market backdrop. In an interview with CNBC’s Wilfred Frost on Dimon’s “Master Investor” podcast, recorded July 16 and released July 21, Dimon said he would “absolutely not” buy the broad stock market at current prices and also would not buy long-dated U.S. Treasuries. The comments came as JPMorgan reported its most profitable quarter in history, with second-quarter net income of $21.2 billion, driven by trading revenue and a gain on its Visa stake. Dimon argued that shocks—including wars, trade frictions, political instability, and rising government deficits—have been shrugged off too easily, leaving investors too comfortable. He compared today’s AI spending boom to the late-1990s internet boom, saying returns may come but not on the expected timetable. He added that even if inflation falls to the Federal Reserve’s 2% target, the 10-year Treasury yield should remain around 4% to 4.5%; the note was around 4.6%.