Warning Investors Again: Do Not Act Impulsively! JPMorgan Chase CEO Dimon: Under Current Conditions, I Would Absolutely Not Buy U.S. Equities or U.S. Treasuries

Jamie Dimon, CEO of Wall Street investment banking leader JPMorgan Chase, has once again issued a stark warning to global investors. In a recent interview, Dimon stated bluntly that current capital markets are severely underestimating the potential crises and uncertainties facing the global economy. With absolute conviction, he declared that at current market prices, he personally "would absolutely not" purchase broad U.S. equity indices or long-term U.S. Treasury bonds.

Dimon pointed out that financial markets have not adequately priced in the growing list of geopolitical and fiscal threats. He specifically highlighted the ongoing conflicts in Ukraine and the Middle East, escalating tensions between the U.S. and China, and rising military expenditures amid soaring government fiscal deficits worldwide.

"I do believe these risks are far greater than others imagine. While it's difficult to precisely calculate how much risk is already reflected in asset prices, what's truly missing is the potential for actual catastrophic events to occur in the future."

This warning stands in sharp contrast to the recent optimistic sentiment in financial markets regarding war, tariffs, and geopolitical shocks. Despite these mounting threats, the S&P 500 index has risen nearly 10% year-to-date in 2026, driven by strong consumer spending, cooling inflation, and a global frenzy for artificial intelligence (AI)-related stocks.

Traders monitor real-time movements in the U.S. stock market. (Associated Press)

Although Wall Street giants like JPMorgan Chase have recently reported strong earnings from robust trading and investment banking activities, Dimon emphasized that greater economic resilience does not mean immunity from potential sudden "tipping points."

Regarding the U.S. federal government's severe budget deficit, Dimon issued a strong warning that it will eventually force the market to face a reckoning. As so-called "bond vigilantes" demand higher returns to finance federal operations, long-term U.S. Treasury yields will be pushed even higher. In his view, even if U.S. inflation successfully returns to the Federal Reserve's 2% target, the 10-year U.S. Treasury yield should reasonably settle between 4% and 4.5%, meaning current U.S. bonds have almost no room for price appreciation.

On the global AI investment boom, Dimon remains cautious and measured, comparing today's surge in AI capital spending to the early days of the internet (dot-com) era.

"The scale of capital being deployed right now is enormous. Will it eventually generate returns? Probably, just like the internet did. But will it deliver returns on your expected timeline and in the way you anticipate? Likely not."

September 20 marks the seasonal "triple witching day," when traders expect further volatility in U.S. equity markets.

Dimon further added that during the dot-com bubble, early giants like Yahoo and Netscape eventually faded from prominence, while true long-term winners like Google and Facebook emerged much later. Therefore, while he does not rule out investing in individual high-value, quality stocks, he absolutely refuses to blindly enter the broad U.S. equity market under current high valuations.