▲ Jamie Dimon, Chairman and CEO of JPMorgan Chase
Jamie Dimon, Chairman and CEO of JPMorgan Chase, known as the "Emperor of Wall Street," stated that he would not purchase stocks or long-term U.S. Treasury bonds at current prices, warning that the market is underestimating the risks facing the global economy.
According to a report by CNBC, Dimon said in an interview with broadcaster Wilfred Frost, released on July 20 (local time), that the market is failing to fully account for growing geopolitical and fiscal threats.
Citing the war in Ukraine, the conflict in the Middle East, tensions between the U.S. and China, and rising military spending amid fiscal deficits, he remarked, "I see these risks as larger than others do."
When asked which markets are underestimating risks, he noted that it is difficult to say for certain, adding, "Some of it might be priced in, but what is not priced in is what actually happens."
Dimon has frequently warned about economic risks in the past.
In a previous interview, while acknowledging that the global economy has become more resilient due to lower energy dependence compared to decades ago, he warned that the possibility of a sudden turning point cannot be ruled out.
He pointed out that the United States' persistent fiscal deficit will eventually come at a cost, which could lead to interest rate hikes.
The expectation is that U.S. Treasury yields will rise as so-called "bond vigilantes" demand greater compensation.
Regarding long-term U.S. Treasurys, he said, "Personally, I would not buy them," adding that even if inflation falls to the Federal Reserve's target of 2%, "the 10-year U.S. Treasury yield will likely remain in the 4.0% to 4.5% range."
He also expressed a cautious stance on stock investments.
He stated that while he might consider individual stocks if they are "great investments," he would not buy index funds at current valuation levels.
(Photo: AP, Yonhap News)
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