JPMorgan’s Jamie Dimon Says U.S. Stocks Are ‘Kind of Inflated’ | Global News Avenue

CEO of JPMorgan Chase Jamie Dimon U.S. stocks are overvalued, he said on Wednesday, explaining why he’s more pessimistic about the global economy than the average Wall Street insider.

“Asset prices are a little bit inflated,” Dimon said in an interview with CNBC’s Andrew Ross Sorkin. world economic forum In Davos, Switzerland. (“I’m talking about the U.S. stock market,” he added. “That’s not the case with stock markets around the world.”)

U.S. stocks were among the best-performing in the world last year after rising sharply the year before. This outperformance has been driven by years of strong U.S. economy, which is underpinned by Flexible labor market and consumer spending in the face of rising interest rates.

Wall Street widely expects the U.S. to continue outperforming this year, in part because of the animal spirits unleashed by President Donald Trump’s plans for deregulation and tax cuts. Asked on Wednesday why he was “cautiously pessimistic” rather than “cautiously optimistic” about the economic outlook, Dimon pointed to rising asset values.

“You need really good results to justify those prices,” he said. “Having strategies that promote growth can help achieve this, but there are downsides that can often surprise you.”

By one measure, Trump is inheriting the most expensive U.S. stock market in history. according to a wall street journal Analysts believe that the stock market Shiller P/E Ratio Trump’s approval rating on the day of his second inauguration was 44% higher than it was in the months before Herbert Hoover’s inauguration. 1929 Stock Market Crash and the onset of the Great Depression.

Dimon’s concerns extend beyond stock valuations. echo statement He said in JPMorgan’s quarterly earnings report last week that he was concerned about the long-term risks of rising geopolitical tensions in Europe, the Middle East and Asia. Global sovereign finance is another cause for concern, he said.

“I’m a little cautious about deficit spending,” he said. “This is a global problem, not just a U.S. problem. And the related ‘Will inflation go away?’ I’m not so sure.”

Dimon appears supportive of Trump administration’s pledge cut government spending and cut provisions. “Growth is the only real solution to reducing the deficit, reducing debt,” he said.