JPMorgan Chase CEO Jamie Dimon has warned that the US stock market is inflated – and said that he feels more cautious than others in the business world.
The 68-year-old billionaire, who has headed the bank for almost two decades, said he is concerned about inflation, geopolitical upheaval and the risks from deficit spending.
‘Asset prices are kind of inflated, by any measure. They are in the top 10 percent or 15 percent’ of historical valuations, he told CNBC at the World Economic Forum in Davos, Switzerland.
The US stock market gained over 20 percent in 2023 and in 2024 – a remarkable feat it has not achieved since the late 1990s.
Last year, Dimon even said shares of his own company, which is the biggest bank in the US, were expensive.
Some investors believe the stock market will continue to make substantial gains in 2025, particularly with Donald Trump’s pro-growth administration taking over.
But others have warned that the market is overvalued, and these back-to-back rallies are not sustainable.
Dimon has been sounding a note of caution on the economy since 2022, when he said a ‘hurricane’ was heading for the US economy, CNBC reported.
In September, he said he could not rule out stagflation as an outcome for the economy – which is widely considered to be worse than a recession.
JPMorgan Chase CEO Jamie Dimon has warned that the US stock market is inflated
‘I do have a little more caution around a bunch of subjects,’ Dimon told the outlet Wednesday.
‘What I’m a little cautious about is the deficit spending; it’s a global issue, not just an American issue,’ he said.
‘And the related [question], “Will inflation go away?” I’m not so sure.’
Global conflicts, including the Ukraine war, tension in the Middle East and growing threats from China has ‘just got me very concerned how it’s going to affect our world for the next 100 years,’ he added.
It comes as some in corporate America have been stunned by President Trump’s breakneck pace as he starts his second term – and are working round the clock to catch up.
Trump has gotten straight to work by signing dozens of executive orders, launching a $500 billion AI venture and firing thousands of White House staffers.
The US stock market gained over 20 percent in 2023 and 2024 – a remarkable feat it has not achieved since the late 1990s
Trump has gotten straight to work by signing dozens of executive orders, launching a $500 billion AI venture and firing thousands of White House staffers
In several areas, corporate elites are scrambling to deal with the president’s often chaotic nature on bills that could dramatically affect their businesses.
JPMorgan Chase has reportedly launched a ‘war room’ to deal with the president’s actions.
Staff members have been encouraged to study Trump’s many executive orders and then send their analysis straight to Dimon, The Wall Street Journal reported.
Bank of America and Citigroup are launching similar rooms to help their international business understand how dramatically America has just changed.
Some corporations are also preparing for Trump’s promised mass deportation program by establishing contacts with a legal hotline.
Fisher Phillips, a top lawn firm, says many companies have tapped into their rapid-response immigration team, with some clients worried that they may be raided by immigration enforcement.
‘We’re already getting calls,’ the law firm’s immigration co-chair, Shannon Stevenson, told the outlet about the 24-hour hotline. ‘That’s only likely to increase.’
Clients – who range from construction firms to healthcare workers – have been given a specific number that they can call at the firm to deal with a surprise raid.
