[JPMorgan CEO: Investors Underestimate Market Risks, Will Not Buy Stocks or Long-Term U.S. Bonds for Now] BlockBeats News, July 21 — JPMorgan CEO Jamie Dimon stated that investors are underestimating geopolitical and fiscal risks facing the global economy. At current prices, he would not buy the overall stock market or long-term U.S. government bonds. Dimon pointed out that the Russia-Ukraine war, Middle East conflicts, strained U.S.-China relations, and increased military spending amid expanding government deficits could ultimately impact the markets. Although the global economy has become more resilient due to reduced energy dependency, this does not rule out the possibility of sudden market shifts. Persistent high U.S. fiscal deficits could eventually drive up interest rates, as bond investors demand higher returns to hold government debt. He believes that even if inflation falls to the Federal Reserve's 2% target, the yield on 10-year U.S. Treasury bonds could remain between 4% and 4.5%, leaving limited room for long-term bond price increases. Regarding stocks, Dimon mentioned that he would consider buying individual stocks if they are high-quality investments, but he would not purchase the broader market at current valuation levels. The S&P 500 Index has risen nearly 10% year-to-date. On the topic of AI, Dimon compared the current investment frenzy to the early days of the internet. He believes that the massive spending on AI may ultimately yield returns similar to the internet, but the manner and timing of those returns "will certainly not be as people expect." He noted that early internet giants like Yahoo and Netscape faded away, while eventual winners like Google and Facebook emerged later. [Original Link]