JPMorgan CEO Jamie Dimon warns against long-dated U.S. Treasuries and S&P 500 at current valuations, citing elevated global debt and fiscal deficits.
Macro & Markets ·
JPMorgan CEO Jamie Dimon stated in a July 21 interview that he would not currently purchase long-dated U.S. government bonds or make substantial stock investments at prevailing prices. Dimon attributed his position to elevated global debt and fiscal deficits, arguing that even if inflation declines to 2%, the 10-year Treasury yield should trade between 4% and 4.5%, implying minimal appreciation potential from current levels.
Regarding broad equity exposure, Dimon indicated a preference for assessing individual companies over index-based investing but left open the possibility of participating in sufficiently compelling opportunities. His stance reflects skepticism about near-term valuations across both fixed-income and equity markets, though his comments stopped short of ruling out selective positioning based on company-level fundamentals.
The remarks underscore divergence among major institutional investors on asset valuations heading into the second half of the year, with debt sustainability and fiscal trajectories cited as key constraints on traditional safe-haven instruments.