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What is the story about?
Jamie Dimon, the CEO of one of the biggest financial institutions in the world, JPMorgan Chase, has cautioned the market and has said that investors are underestimating the risk facing the global economy. Furthermore, he also added that he wouldn’t buy either equities or long-dated US Treasuries at their current prices.
Risks Underestimated
Dimon was speaking to CNBC when he assessed where the markets are heading and said that the system is not fully accounting for a growing list of geopolitical and fiscal threats.
Speaking to CNBC, he cited ongoing conflicts and said, “I do think those risks are probably bigger than other people think,” pointing to wars in Ukraine and the Middle East, tensions between the US and China, and rising military spending amid mounting government deficits.
According to Dimon, because consumers are still spending, inflation has decreased, and investors are embracing the artificial intelligence market, the S&P 500 has returned almost 10% this year.
Also Read: Nifty Outlook for July 21: Trend remains positive till 24,000 holds; oil prices remain key
The idea that the US economy has fared better than many anticipated in the face of recent global unrest was reinforced this week when JPMorgan Chase and its competitors released spectacular quarterly results driven by rising trading and investment banking revenue.
On Treasuries And AI
On long-dated Treasuries, Dimon said that personally he would be against buying them in their current state.
"The 10-year bond should probably be at 4% to 4.5% even if inflation returns to the Federal Reserve's 2% target," he stated, adding that he doesn't think Treasury prices would rise much.
He also exercised caution when it came to stocks. Dimon stated that he wouldn't purchase the entire market at the current values, but he would think about purchasing a single stock if it was "a great investment".
Talking about AI and investment in the sector, he added, “The amount of money being spent is huge. Will it in total pay off? Probably, just like the internet did,”.
Risks Underestimated
Dimon was speaking to CNBC when he assessed where the markets are heading and said that the system is not fully accounting for a growing list of geopolitical and fiscal threats.
Speaking to CNBC, he cited ongoing conflicts and said, “I do think those risks are probably bigger than other people think,” pointing to wars in Ukraine and the Middle East, tensions between the US and China, and rising military spending amid mounting government deficits.
According to Dimon, because consumers are still spending, inflation has decreased, and investors are embracing the artificial intelligence market, the S&P 500 has returned almost 10% this year.
Also Read: Nifty Outlook for July 21: Trend remains positive till 24,000 holds; oil prices remain key
The idea that the US economy has fared better than many anticipated in the face of recent global unrest was reinforced this week when JPMorgan Chase and its competitors released spectacular quarterly results driven by rising trading and investment banking revenue.
On Treasuries And AI
On long-dated Treasuries, Dimon said that personally he would be against buying them in their current state.
"The 10-year bond should probably be at 4% to 4.5% even if inflation returns to the Federal Reserve's 2% target," he stated, adding that he doesn't think Treasury prices would rise much.
He also exercised caution when it came to stocks. Dimon stated that he wouldn't purchase the entire market at the current values, but he would think about purchasing a single stock if it was "a great investment".
Talking about AI and investment in the sector, he added, “The amount of money being spent is huge. Will it in total pay off? Probably, just like the internet did,”.
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