JPMorgan Chase NYSE:JPM CEO Jamie Dimon is warning that investors may be underestimating the scale of global economic and geopolitical risks, saying he would avoid buying stocks and long-dated U.S. Treasurys at current levels.
Dimon pointed to the wars in Ukraine and the Middle East, rising U.S.-China tensions, higher military spending and widening government deficits. His concern is that markets may recognize these risks broadly without fully pricing in how damaging the eventual outcomes could become.
JPMorgan is the largest U.S. bank by assets, with major businesses across consumer banking, credit cards, investment banking, trading and asset management. Its results often provide a useful reading on the health of consumers, corporations and financial markets.
Dimon also criticized the U.K.'s bank tax surcharge, warning that an uncompetitive tax system could push investment and capital elsewhere. His comments came even as JPMorgan and other large banks reported strong quarterly results, helped by trading and investment banking.