JPMorgan CEO Jamie Dimon Said He Wouldn’t Buy U.S. Equities Or Long-Term Treasuries Now. Wars And High Spending Are To Blame

JPMorgan CEO said he wouldn’t buy U.S. equities or long-dated treasuries at current prices as a result of current geopolitical and fiscal risks.

In an interview with host Wilfred Frost, Dimon said markets are not fully taking into account the risks posed by the ongoing wars and high military spending despite government deficits.

“I do think those risks are probably bigger than other people think,” Dimon said, noting that it is difficult to determine how much is priced in the current value of assets. “It’s possible something’s baked in, but what’s not baked in is what actually happens,” he added.

Elsewhere in the interview, Dimon conceded that the global economy has managed to stay resilient despite the months-long energy shock due to a lower reliance on energy compared to previous decades, but warned there could still be a breaking point.

“You may need more straws in the camel’s back to cause that tipping point,” Dimon said.

The war continues in the meantime, with the U.S. Central Command saying it conducted a 10th night of strikes to “degrade Iran’s ability to continue attacking commercial vessels flowing through the Strait of Hormuz.”

Mediators are pushing for de-escalation, reportedly proposing a 10-day ceasefire. Axios detailed that the Trump administration is exploring the proposal and has urged Israel to take steps that could eliminate that possibility. At the same time, it is preparing for an expanded war.

Yemen’s Houthi rebels, allies of Iran, also declared a maritime embargo of Saudi Arabia on Monday.

The group said in a document that the decision is based on the “equation of ‘an eye for an eye'” and will “respond to all escalation with all escalation, thus solidifying this equation.”

It went on to threaten Riyadh further, saying it is ready “for all options, and any foolish act committed by the reckless Saudi enemy through all escalation will be met with a comprehensive and decisive escalation by Allah’s will and power.”

Speaking about the state of the stock market elsewhere in the interview, Dimon said he would buy individual stocks if he believed it could be a good investment, but not indexes as a whole due to its current valuation.

As for AI, he claimed that “massive” investments being made in the industry will “probably” pay off, but “definitely not” in the way and timetable investors might expect.