US stock market ‘overvalued’
Jamie Dimon, President and CEO, Chairman and CEO JPMorgan Chase, speaks on CNBC’s Squawk Box during the World Economic Forum Annual Meeting on January 17, 2024 in Davos, Switzerland.
Adam Galisi CNBC
JPMorgan Chase CEO Jamie Dimon said Wednesday that the U.S. stock market is overvalued, adding that he is more cautious than others in the business world due to concerns about cash shortages, inflation and geopolitical turmoil.
“Asset prices are inflated by any measure. They’re 10% or 15% above historical estimates,” Dimon told CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland.
Dimon is talking specifically about the U.S. stock market, which is in the midst of a multi-year bull run. The S&P 500 had back-to-back annual gains of more than 20% in 2023 and 2024, the first time in more than 25 years. Last year, Dimon called his own company’s stock expensive.
But Dimon also noted that parts of the bond market, like sovereign debt, are at an “all-time high.”
“So yes, they are high, and you need good results to justify those prices,” Dimon said. “Having pro-growth strategies can help that happen, but there are downsides, and they can surprise you.”
Dimon, 68, is one of the most respected voices in finance after building JPMorgan into the largest U.S. bank by assets and market capitalization.
In the year He has been sounding a note of caution since 2022, when a “storm” is headed his way for the US economy. However, that storm has not yet arrived, as the United States has been more than expected in recent years, and the election of Donald Trump in November has raised expectations of what the pro-growth administration will do.
“I’m a little cautious around different topics,” Dimon said Wednesday. What I am a bit wary of is the cost disadvantage. It’s not just an American issue, it’s a global issue,” he said. “And the related (question) is, ‘Will inflation go away?’ I’m not so sure.”
Dimon said that escalating global conflicts, including the war in Ukraine, tensions in the Middle East and the growing threat from China, “will affect our world for the next 100 years.”
In a wide-ranging interview, Dimon said he would support tariffs on U.S. imports if they strengthened national security, and that he and tech entrepreneur Elon Musk had mended their previously contentious relationship. Dimon has said he has no interest in running for re-election in 2028.
