Jamie Dimon Avoids Stocks and Treasurys Citing Fiscal Risks

Jamie Dimon, CEO of JPMorgan Chase & Co., announced he is personally avoiding investments in U.S. equity indexes and long-dated U.S. Treasury bills at current valuations. Speaking on The Master Investor podcast, Dimon warned that global financial markets are underestimating significant geopolitical and fiscal risks, including the wars in Ukraine and the Middle East, tensions between the United States and China, and rising military spending.

Dimon identified persistent U.S. government deficits and a national debt exceeding $39 trillion as primary threats that could trigger a bond market crisis and eventually drive interest rates higher. While he expressed openness to purchasing individual stocks based on specific merits, he argued that broader market valuations do not sufficiently account for these headwinds. These remarks follow a second quarter in which JPMorgan Chase posted a record net income of $21.2 billion.

Regarding the artificial intelligence boom, Dimon compared current spending by hyperscalers to the early internet era. He suggested that while the investments will likely pay off in total, the timing and specific winners of the cycle may differ from current investor expectations. His warnings coincide with broader market instability, including rising oil prices following the breakdown of a ceasefire between the United States and Iran.