Jamie Dimon sounds the alarm on stocks, says the market is looking ‘kind of inflated’ | Business Insider

CNBC/Jamie Dimon

• JPMorgan CEO Jamie Dimon warned that stocks are overvalued.
• Dimon sees lingering risks including inflation, government deficit spending, and geopolitical tensions.
• Dimon’s comments echo a recent warning from Goldman Sachs that the market is “priced for perfection.”

JPMorgan CEO Jamie Dimon sounded the alarm on stocks in an interview today at the World Economic Forum in Davos, Switzerland, saying that the market looks overvalued.

“Asset prices are kind of inflated, by any measure,” Dimon told CNBC in Davos. He added that “they are in the top 10% or 15%” of historical valuations.

The S&P 500 is less than 1% away from hitting a record high, and elevated valuations have been a hallmark of the current bull market rally that began in October 2022.

The S&P 500 is trading at a forward price-to-earnings multiple of 21.6x, which is above its five-year and 10-year average of 19.7x and 18.2x, respectively.

Dimon said many things have to go right for the stock market to continue its record run.

“They’re elevated, and you need fairly good outcomes to justify those prices. Having pro-growth strategies helps make that happen, but there are negatives out there, and they can tend to surprise you,” Dimon said.

Some of the “negatives” that concern Dimon include the potential for a rebound in inflation, ongoing risks from government deficit spending, and ongoing geopolitical risks.

“What I’m a little cautious about is the deficit spending; it’s a global issue, not just an American issue,” he said. “And the related , ‘Will inflation go away?’ I’m not so sure.”

Dimon’s cautious comments come as the new Trump administration unleashes “animal spirits” that have helped spark a rally in the stock market.

Stanley Druckenmiller, a top hedge fund investor, used the term in an interview with CNBC on Monday. He said that in his 49-year career, he’s never seen such an about-face in Washington, DC, from the perceived anti-business stance of the Biden administration to the pro-business stance of the Trump administration.

“We do a lot of talking to CEOs and companies on the ground, and I’d say CEOs are somewhere between relieved and giddy,” Druckenmiller said. “So we’re a believer in animal spirits.”

But Dimon isn’t the only one with a cautious view of the stock market.

A recent note from strategists at Goldman Sachs suggested that the stock market is “priced for perfection.”

The bank said it sees the stock market as increasingly vulnerable to a correction this year, especially given the historically high valuations and concentration in a handful of stocks.

“Looking at individual markets, the US has a valuation at its 20-year peak, and this remains true even if we exclude the largest technology companies,” Goldman Sachs said. “This combination of performance over recent months and high valuations implies lower returns than in 2024.”

This isn’t the first time Dimon has struck a cautious tone on the stock market. Over the past three years, he has repeatedly warned of a potential economic “hurricane” hurting the market, though his prediction has yet to be realized.

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Source: Jamie Dimon sounds the alarm on stocks, says the market is looking ‘kind of inflated’

JPMorgan Chase CEO Jamie Dimon Is Secretly Advising Trump on Policy Agenda Before and After His Massive Win: Report | The Gateway Pundit

JPMorgan Chase CEO Jamie Dimon Is Secretly Advising Trump on Policy Agenda Before and After His Massive Win: Report

President Donald Trump with Jamie Dimon, CEO of JPMorgan (Photo: Getty Images)

Jamie Dimon, the CEO of America’s largest bank, JPMorgan Chase, has been revealed as a secret adviser to President-elect Donald Trump, shaping a bold policy agenda both before and after his decisive election victory, four sources told The New York Post.

Dimon, Chairman of the Board and Chief Executive Officer of JPMorgan Chase & Co., a banking firm with assets of $3.2 trillion and operations worldwide, has emerged as an influential sounding board for Trump.

A company insider revealed that despite their potent collaboration, efforts were made to keep these consultations under wraps to prevent leaks. The president-elect’s team, keen on maintaining a strategic distance in public perception between Trump and Democrat Dimon, orchestrated the confidential discussions.

Sources close to Trump’s transition team revealed that Dimon has engaged in candid, behind-the-scenes discussions on cutting government spending, revamping banking regulations, lowering taxes, and rebalancing trade policies.

“They have been speaking regularly for months,” said one of the GOP sources.

The Post reported:

The quietly cozy relationship between Trump and Dimon has flourished despite the banker’s cryptic and tight-lipped tendencies when it comes to politics. Trump had floated Dimon’s name as a possible Treasury secretary pick in June and later claimed he had won his White House endorsement — despite a lack of any public statement from Dimon to that effect.

Trump and Dimon also have continued to talk despite bouts of tension, including on Nov. 14 when the president-elect declared on Truth Social that Dimon ”will not be invited” to join his Cabinet. The banker promptly shot back: “I haven’t had a boss in 25 years and I’m not about ready to start.”

The JPMorgan CEO, a registered Democrat who declined to back either candidate in the White House race, had even reportedly toyed with the idea of joining a Kamala Harris administration but then ruled himself out of leaving the Wall Street giant when her poll numbers tanked, The Post previously reported.

On Nov. 22, The Post broke the news that Trump was also consulting with Blackrock CEO Larry Fink, a major Dem donor, on policy issues.

Nevertheless, the former” Apprentice” star’s admiration of Dimon, who has helmed JPMorgan Chase for nearly two decades and has a net worth estimated by Forbes at $2.6 billion, was described by one source as “a man crush.”

Dimon is not the only Wall Street giant lending his expertise to the president-elect. Reports also suggest that Trump has consulted BlackRock CEO Larry Fink and has been seeking advice from a “kitchen cabinet” of Wall Street executives following his appointment of Scott Bessent, a former partner at Soros Fund Management, as Secretary of the Treasury.

Wells Fargo analyst Mike Mayo believes this marks a seismic shift for the financial sector, heralding a “new era of deregulation” under Trump’s leadership.

“This is Jamie’s vindication,” Mayo told The Post. “He is looking at all the bureaucracy and red tape and saying enough of the regulatory theater. It’s like banking with one hand tied behind your back”

Ever since Chase Bank got rid of the Jeffrey Epstein-linked string of lawsuits, Dimon has been able to fully reposition himself as a leading voice on the economy and may even be signaling a shift in his political views.

Earlier this year, during an appearance on CNBC’s “Squawk Box,” JPMorgan CEO Jamie Dimon provided a candid analysis of the American political landscape while speaking at the World Economic Forum in Davos.

Dimon acknowledged that former President Donald Trump’s economic policies resonate with many voters, and he criticized the media and Democrat rhetoric for creating divisions.

“I wish the Democrats would think a little more carefully when they talk about MAGA,” said Dimon.

“When people say ‘MAGA,’ they’re actually looking at people voting for Trump, and they think they’re voting, and they’re basically scapegoating them, that you are like him. But I don’t think they’re voting for Trump because of his family values.”

He went on to acknowledge that, from his perspective, Trump had been “kind of right” about several significant issues, such as NATO, immigration, economic growth, tax reform, and some aspects of foreign policy concerning China.

“And that’s why they’re voting for him,” Dimon said, suggesting that voters’ decisions are more nuanced than some critics might suggest.

He called out the Democrats and Biden regime for demonizing millions of Americans who voted for Trump.

“The Democrats have done a pretty good job with the deplorables, hugging onto their bibles and beer, and their guns. I mean, really, can we just stop that stuff and actually grow up, treat other people with respect, and listen to them a little bit? And, I do think the economy will affect, and I think this negative talk about MAGA is going to hurt Biden’s election campaign.”

The post JPMorgan Chase CEO Jamie Dimon Is Secretly Advising Trump on Policy Agenda Before and After His Massive Win: Report appeared first on The Gateway Pundit.